Posted on 25 Jun 2021
Over June 11-20, daily crude steel output among the member mills of the China Iron & Steel Association (CISA) increased by 2.6% or 600,900 tonnes from June 1-10, averaging 2.4 million tonnes/day, according to the association’s release on June 23.
By June 20, finished steel stocks at the member mills had surged by 10.3% from June 10 to 15.7 million tonnes, according CISA data. The stocks total was also 35% higher than the level at the start of 2021.
Based on the performance of its member mills, CISA estimated the country’s daily crude steel output nationwide at 3.24 million t/d over June 11-20, inching up 1.09% from June 1-10 or also up 14% on year.
Mysteel’s output survey over June 11-20 among a larger group of 318 mills including 247 blast-furnace and 71 electric-arc-furnace mills differed from CISA’s findings, as the sampled mills’ daily crude steel output had reversed down by 5,700 t/d or 0.2% from June 1-10 to 3.08 million t/d on average.
In its latest monthly market report released June 22, CISA said that steel supply has generally remained stable, as most Chinese steelmakers are still maintaining high steel output and are unwilling to lower their production, as Mysteel Global reported.
“From the steel demand side, there have been some softening signals, though overall demand still remains robust,” CISA commented in the report.
For individual end-user sectors, the property market has gradually cooled off under the strict controls imposed by the central government, while in South China, some construction contractors will have to slow their operations when the rainy season intensifies, CISA said. In parallel, the chronic shortage of semiconductors will continue to hamper domestic automobile production, while white goods output has also slackened off this quarter, the report noted.
Source:Mysteel Global
