Daily Crude Steel Output Increases at Key Chinese Mills

Steel production in China maintained moderate growth in mid-June, en route to a new all-time high monthly production, as decent profit margins supported production growth.

On Tuesday, the China Metallurgy Association (CISA) reported that crude steel production at its major plants in China averaged 2.14 million tonnes per day in the second decade of June. This was the highest level on record and rose 1.57% from the level seen in early June.

Daily crude steel output in mid-June was 2.89% above the average for the entire month of May and 3.74% higher than the same period last year, according to the CISA report.

Compared to early June, average daily pig iron production at these plants increased by 1.59% to 1.91 million tonnes in mid-June, while steel production increased by 4.82% to 2.08 million tonnes.

As of June 20, stocks of metal products at these plants amounted to 14.62 million tons, an increase of 797,400 tons or 5.77% compared to June 10. Inventories were 5.09 million tons, or 53.36% higher than at the beginning of the year.

SMM calculations showed that blast mill profits in China are stable at 200-400 RMB /ton, which is enough to induce factories to operate at rates above 90%.