Posted on 01 Jun 2021
In the coming June, the Chinese steel market may see relatively balanced demand and supply, according to Mysteel’s monthly forecast report. Demand will flatten due to the arrival of the rainy season in the country’s southern and eastern parts and Beijing’s reiterated warnings about speculative activities, while steel output may increase marginally, it said.
For April, China posted on-year growth in crude steel output of 13.4% to reach 97.9 million tonnes in total, with average daily output refreshing a record high of 3.26 million tonnes/day, which was higher by 7.5% on month, as reported.
During May, daily crude steel output across China is expected to average slightly more at 3.3 million t/d, showing that the domestic mills’ enthusiasm for ramping up production still stayed firm. That uptick in output should continue in the coming month as well, according to Mysteel’s projection.
In the first four months of 2021, China’s apparent consumption of crude steel increased by 15.4% on year to 356 million tonnes, and for April alone, the number amounted to 91.6 million tonnes, or up 12.8% on year, Mysteel calculated based on official statistics.
As of May 27, the spot sales of construction steel comprising rebar, wire rod and bar-in-coil among the 237 Chinese steel traders Mysteel canvasses averaged 212,250 t/d for the month, as against the 260,471 t/d of April, according to the related survey.
China’s national price of HRB400E 20mm dia rebar, an indicator of the Chinese steel market sentiment, was assessed by Mysteel at Yuan 5,017/t ($788/t) as of May 27, or dropping to around early-April levels, the data showed.
Source:Mysteel Global
