CISA: Member mills’ mid-Nov daily output at 5-month low
Despite the continuous decline since late October, daily production among CISA’s member mills still recorded on-year growth of 5.9% over the ten day period, indicating that many medium-and large-sized steelmakers are still endeavouring to keep their production at a relatively high level.
Demand from users remained healthy overall in mid-November, resulting in a decrease in finished steel stocks. The association’s release showed that as of November 20, total steel stocks at CISA’s member mills resumed their decline to reach 12.6 million tonnes, falling by 2.2% from ten days earlier. Nevertheless, the inventories total was still 31.9% higher compared with the beginning of this year, or up 3.9% compared with the mid ten days in November 2019.
Total stocks of the five major steel products held by traders in 20 major cities under CISA’s survey witnessed a larger drop to 8.8 million tonnes as of November 20, down 12.8% compared with the total as of November 10, according to CISA’s other survey. The five items comprise rebar, wire rod, hot-rolled coil, cold-rolled coil and medium plate.
Therefore, after noting the steady consumption of end-users many Chinese steel producers and traders are continuing efforts to raise their offering prices for spot sales. For example, Mysteel’s data shows that as of November 20, China’s national price of HRB 400 20mm dia rebar, a key market sentiment indicator, had gained another Yuan 55/tonne ($8.4/t) from November 10 to reach Yuan 4,174/t including the 13% VAT.
Based on its member mills’ production, CISA estimated that the country’s daily crude steel output declined by another 1.8% from early November to 2.9 million t/d over November 11-20, though this was 9.5% higher on year. The country’s daily finished steel output averaged 3.77 million t/d in the middle ten days of November, up1.4% from November 1-10 or 14.9% on year.
Written by Nancy Zheng, zhengmm@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
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