In view of the decrease in steel demand and the increase in inventories, the steel mills that are members of the China Iron and Steel Association (Cisa) reduced their crude steel production in March to 2.048 million t/d, registering a significant drop of 0.51 for the steel sector.
Fluctuations in Cisa’s Chinese steel mill production
They reduced their production because they experienced a decrease of 9.12% compared to the same period of the previous year. In the case of daily pig iron production, it also showed a decrease of 0.42 percent from March 1 to 10 to 1.836 million t/d from March 11 to 20, showing a decrease of 6.56 percent from the previous year.
In the March 1 to 10 period, the daily production of steel daily production of finished steel production of finished steel increased by 1.95%, reaching 1.965 million metric tons per day. However, from March 11 to 20, there was a decrease of 8.05% compared to the same period of the previous year.
According to a Cisa release, its members’ steel inventories reached 19.533 million tons between March 11 and March 20, showing an increase of 0.05% over the March 1-10 period and 3.04% compared to the same period last year.
Other important values
These numbers indicate information from more than 100 of Cisa’s major Chinese steel mills. Demand in the Chinese market during the spring season was below expectations, resulting in a build-up of inventories after the Lunar New Year at the end of February.
A decrease in steel prices was also observed. The price of rebar at the Shanghai warehouse, for example, dropped by 200 yuan per ton (equivalent to $28, per ton), representing a 5.4 percent decline since March 1, reaching 3,530 yuan per ton on March 20.
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Source: Argus Media
Photo: Shutterstock
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