China’s daily crude steel output rose by 24.38pc in mid-February from a year ago amid a robust post-holiday demand outlook, according to CISA data. Production levels were elevated from the prior year, also, due to a lower base amid the impacted of the COVID-19 pandemic last year. In mid-February, mills ramped up production despite high finished inventories and the Lunar New Year holidays pushing crude steel production up by 3.49pc from early-February.
Daily steel products’ output rose to 2.120mn mt in mid-February, up by 25.30pc from the prior year and up by 2.82pc from early-February. Pig iron production was at 2.02mn mt, up by 16.99pc from the prior year, while down by 3.65pc from the prior 10-day period.
|China’s average daily output in mid-Feb (mn mt)|
CISA compiles production data from around 90 statistically significant steel producers across China. In the first 20-day of February, key steelmakers produced 44.394mn mt of crude steel up by 17.62pc from the prior year period, while down by 0.30pc from the prior month. Steel products output rose to 41.391mn mt up by 19.92pc from a year ago and a decrease of 1.87pc from the prior month.
Steel inventories at key producers in mid-February rose to 17.547mn mt, an increase of 21.28pc or 3.07910mt from early-February, indicative of high inventory build-up due to slow sales during the holidays. Inventories fell by 17.78pc or 3.794mn mt from the prior year period.