China’s daily average crude steel production fell to 2.137mn mt in early-July, down by 5.56 from the prior 10-day, according to CISA data. In late-June, CISA members had lowered output by 5.5pc from the prior period. Daily crude steel production was up marginally by 0.32pc from the prior year period.
The decline in production reflects the determination of both the steelmakers and the regulators to maintain production at levels lower than 2020 as part of the supply-side reforms.
| China’s average daily output in early-July (mn mt) | ||||
|---|---|---|---|---|
| Production | Early-July | Late-June | Change | Change (YoY) |
| Crude Steel | 2.137 | 2.263 | -5.56% | 0.32% |
| Pig iron | 1.860 | 1.937 | -3.98% | -2.99% |
| Steel | 1.962 | 2.281 | -13.98% | -0.86% |
Production level in year over year comparison is coming back to parity as Chinese mills had ramp up production in H2 2020, post the immediate setback of the COVID-19 pandemic.
Daily steel products’ output fell to 1.962mn mt in early-July, down by 13.98pc from late-June, while down marginally from the prior year period. Pig iron production was at 1.860mn mt, down by 3.98pc from late-June, while down by 2.99pc from the prior year.
Steel inventories at key producers in early-July hit 14.05mn mt, up by 291,200mt or 2.12pc from late-June and up by 441,400mt or 3.2pc from the prior year period. Inventories are up by 2.436mn mt from the beginning of the year.