China’s daily average crude steel output rose by 14.87pc to 2.162mn mt in late-Dec from the prior year period, while it dipped slightly by 1.76pc from mid-Dec, according to data released by China Iron and Steel Association (CISA). Many mills in China maintained higher production to benefit from elevated domestic steel prices.
|China’s average daily output in late-Dec (mn mt)|
Daily steel products’ output increased to 2.237mn mt, up by 16.50pc from the prior year and up by 4.74pc from mid-December. Pig iron production was at 1.889mn mt, up 12.49pc from the prior year, while down by 2.34pc from the prior 10-day period. CISA compiles production data from around 90 statistically significant steel producers across China. The association rejig the statistical sample in December with the addition of Delong Group, Donghai Special Steel and other steel companies. Excluding these changes average daily crude steel production in late-December fell by 0.16pc and steel products increased by 0.43pc from the prior 10-days.
In December, key steelmakers surveyed by CISA produced 68.078mn mt crude steel, up by 13.88pc from the prior year period. Pig iron production rose by 11.81pc to 59.665mn mt and steel product output rose by 14.34pc to 66.917mn mt from the prior year period.
Steel inventories at key producers in late-December stood at 11.61mn mt, down by 10.59pc or 1.429mn mt from mid-December and up by 21.91pc or 2.08mn mt from the prior year period.
Besides the usual winter production curbs, this December, steel producers in China are also facing a shortage of coal and electricity due to high peak demand amid colder winter. Most steel producers have raised steel prices and passed on higher raw material costs to end-consumers.