Posted on 17 Nov 2021
Over November 1-10, daily crude steel output among the member mills of the China Iron & Steel Association (CISA) recovered by 3.7% or 64,200 tonnes/day from the late October period to average 1.8 million t/d, according to CISA's latest release on November 15.
CISA reviews its member mills' steel output three times a month, and based on the latest survey result, it estimated that the country's total daily crude steel output - among CISA and non-CISA mills combined - averaged 2.3 million t/d over November 1-10, or up 3.2% from the last 11 days of October.
By November 10, the member mills' finished steel stocks grew by 5.2% or 661,900 tonnes from October 31 to reach 13.5 million tonnes, 16.2% higher from the start of 2021, largely due to slack demand in many regions of China at the outset of winter.
In contrast, the findings of Mysteel's survey of production among a larger group of the 318 domestic steel mills comprising 247 blast-furnace and 71 electric-arc-furnace mills differed from CISA's. According to Mysteel's data, their average daily crude steel production over November 1-10 reached a 20-month low of 2.5 million t/d, down 3.6% or 92,700 t/d from the late October period.
The softening of finished steel prices and weakening steel demand had not only dampened market sentiment, but also steel mills' enthusiasm for production as their profit margins have been seriously squeezed, according to market sources.
Meanwhile, spot trading of construction steel comprising rebar, wire rod and bar-in-coil among the 237 traders Mysteel tracks averaged 166,957 t/d over November 1-10, up 1.7% or 2,777 t/d from that of late October. The trading volume was still at a low level as China has entered the traditional off-season for steel consumption.
Chinese steel prices saw continuing falls in early November, and by November 10, the country's national price of HRB400E 20mm dia rebar under Mysteel's assessment had declined to a 7.5-month low of Yuan 4,790/tonne ($751/t) including the 13% VAT, lower by Yuan 571/t from October 29.
Source:Mysteel Global
