Posted on 17 Jan 2022
Daily crude steel output among the member mills of the China Iron & Steel Association (CISA) reversed down in the first ten days of this month after the rise in late December, according to the association's latest release on January 14. The members' daily output was down 125,600 tonnes/day or 6% at 1.97 million t/d on average.
Based on the result for CISA's member steel mills, the association estimated the national daily crude steel output over January 1-10 averaged 2.52 million t/d, down 115,900 t/d or 4.4% from that for late December.
The result indicated that some domestic steelmakers, especially medium- and large-sized mills, conducted early maintenance to ensure uninterrupted operations during the Chinese New Year holiday over January 31-February 6. Afterall, steel demand from end-users remained lackluster in the opening days of this year with the long holiday looming and the resurgence of COVID-19 in many regions including Northwest China's Shaanxi, North China's Tianjin and Central China's Henan, Mysteel Global noted.
For example, over January 1-10, the daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 Chinese traders under Mysteel's regular survey averaged 145,473 t/d, still a very low level though higher by a small 643 t/d from that for late December - thanks to the replenishment of some end-users after the New Year holiday over January 1-3.
Chinese steel prices saw some recovery in early January, as sentiment in the domestic market improved somewhat with strengthening prices in the futures market, Mysteel Global noted.
As of January 10, the national price of HRB400E 20mm dia rebar was assessed by Mysteel at Yuan 4,747/tonne ($747/t) including the 13% VAT, higher by Yuan 21/t from the end of December. On the same day, the most-traded May 2022 rebar contract on the Shanghai Futures Exchange closed the daytime trading session at Yuan 4,492/tonne ($728/t), up Yuan 191/t from the settlement price on December 31.
Finished steel stocks held by CISA's member mills resumed their rise in early January after the retreat seen in late December, jumping by 1.63 million tonnes or 14.4% from December 31 to 12.92 million tonnes as of January 10, the association's release showed. This was lower by 0.8% from one year earlier, however.
Source:Mysteel Global
