SHANGHAI: China's daily crude steel output stood at 1.699 million tonnes from Feb. 11-20, flat from 1.696 million tonnes during the preceding period, the latest data from the China Iron & Steel Association (CISA) showed.
Daily production rates in the world's largest steel-producing country have been hovering below 1.7 million tonnes since November, after reaching some 2 million tonnes in June amid a construction boom. CISA revised its figures for early-February from 1.705 million tonnes.
Some analysts speculated that the data was under-reported in spite of an unexpectedly slow recovery in steel demand and high market inventories have kept steel mills from ramping up production.
"The figure was probably under-reported, and steel output should have been higher than 1.7 million tonnes per day as demand is still picking up, though at a slower-than-usual rate," said Hu Zhengwu, a steel analyst with industry consultancy Custeel.com in Beijing.
CISA's key members -- usually 76-78 medium- and large-sized steel mills -- produced 1.582 million tonnes of crude steel per day during Feb.11-20, up 1.13 percent from the first 10 days, data showed.
"Large mills lifted their production by around 1 percent, so there was no reason for small mills not to accelerate production," Hu added.
Traders remain cautious on steel prices in the world's second-largest economy as the euro zone financial crisis and China's resolution to stick to property control policies weigh on steel demand.
"The steel sector will be closely tied to China's macro-economic policy. Beijing won't easily loosen its control on property, so hence the sector may not be able to improve until the second half of this year," said an official with a private steel mill in Hebei province.
"Some steel mills still find it difficult to sell their products despite ongoing restocking," he added.
Comments
Comments are closed for this article.