CISA: Daily crude steel output rise 1.8% over Nov 11-20
Higher output while softening demand during the period saw steel inventories at CISA’s member steel mills increase by 8.5% over ten days to 13.27 million tonnes as of November 20.
CISA’s
result has differed from Mysteel’s much larger-scaled survey that indicates
China’s daily steel output on 348 steel mills including 247 blast-furnace and
101 electric-arc-furnace producers has been declining steadily since early
November, with China’s daily output over November 11-20 dropping by 0.5% over
the ten days to 2.37 million t/d, as reported.
The continuing growth in the daily steel output among CISA mills, most being large-sized producers, was most likely because of the remaining healthy margins despite domestic steel prices slumped in November, and mills’ fear of market share loss to rival producers if they cut down on production, market sources explained.
For example, the average rebar sales margins the Chinese steel mills enjoyed was still assessed at Yuan 817/tonne ($118/t) as of November 30 despite a decline by Yuan 431/t on month, according to Mysteel’s production study among 101 steelmakers nationwide.
CISA did not release its estimation on the
national daily steel output over November 11-20 basing on its members’
performance.
Over November 21-30, however, the country’s
daily crude steel output would probably reverse down as Mysteel’s survey on 348
steel mills showed
that their daily steel output fell another 1.4% from the past ten days to 2.34
million tonnes/day.
The decrease in daily steel output has been
of little surprise to the market as six more blast furnaces in North China were
taken offline for maintenance, Mysteel explained in the release on December 1.
The 247 surveyed mills’ blast furnace
operation rate dropped to its a 37-week low over November 23-29, after a
further decline by 0.7% on week to 76.89% as of November 29.
Basing on its surveys, Mysteel estimates China’s
daily steel output for the whole November to decline by 1.6% on month to 2.37
million t/d.
China’s National Bureau of Statistics will
release the official crude steel production for November on December 14.
Written by Thea Feng, fengyx@mysteel.com
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