In China, daily steel production at the end of June fell by 5.5%

Daily crude steel production at CISA member enterprises fell 5.5% or 131,933 tonnes per day from June 11 to 20, averaging 2.26 million tonnes per day over the past ten days in June, according to a July 5 press release from the association, as steel mills in major steelmaking provinces such as Hebei, Shanxi and Shandong already saw a reduction in steel production on June 24 due to Beijing’s grand celebration of July 1.

Thus, for the entire June, the daily steel production at CISA member enterprises decreased by 0.8% compared to the previous month to 2.33 million t /d on average, although, according to CISA, it was still at 14. 1% higher than a year earlier.

Based on data from member plants, CISA estimated the country’s daily crude steel output at 3.13 million tonnes /day from June 21 to June 30, or 3.6% less than in mid-June, but also 11.4 % higher than last year.

Mysteel’s survey of a larger group of 318 Chinese steel mills, including 247 blast furnaces and 71 electric arc plants, matched the CISA estimate as their daily crude steel output fell 68,200 tpd, or 2.2% in ten days, to 3 million tones. /d on average for June 21-30.

In the last ten days of June, steel mills in regions geologically close to Beijing were asked to suspend agglomeration, pelletizing, and postpone their blast furnaces for a couple of days around July 1, just to reduce pollution from the big event. 100th anniversary of the Chinese Communist Party.

Affected steel mills resumed normal operations following the accident.

However, the manufacturing enthusiasm of Chinese steel mills has recently been weakened by lower steel margins and lower demand, and the national price of 20mm HRB400E rebar in China, for example, as estimated by Mysteel, has dropped by 187 yuan /tonne ($ 29 /tonne) since June 18. to 4,939 yuan per tonne, including 13% VAT as of June 30, while Australia’s Mysteel SEADEX 62% fines index rose $ 1.9 per tonne over the same period to $ 217 per tonne CFR Qingdao.

As a result of lower production volumes, stocks of finished steel at the enterprises of the association fell by 12.3% from June 20 to 13.77 million tonnes by the end of June, although, according to CISA, the volume was still at 18. 5% higher than at the beginning of 2021.

Spot sales of long steel in particular declined in the hot summer, as Mysteel’s tracking of 237 trading houses in China suggested, as their daily sales of construction steel, including rebar, wire rod and coil, fell 18,331 t /day, or 9. one. % from June 11-20 to 182,530 dpi on June 21-30 average, and low sales may persist throughout July.

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