Steel mills resume production early December
2010-12-22 09:25:43 【Print】
BEIJING (Asian Metal) 22 Dec 10 – As the national policy of energy-saving and emission-reduction has ended up, steel mills are putting back to production, which were previously restricted by electricity limitation.
The latest data released by China Iron & Steel Association yesterday showed that domestic output of crude steel continued to rise in December. In the first ten days of this month, the total output of crude steel for large and medium-sized enterprises was 14.05 million tons against 16.669 million tons estimated for the whole country, with daily outputs of 1.405 million tons and 1.667 million tons respectively, with net increase amounts of 37,000 tons and 24,000 tons month on month respectively against increase rates of 2.7% and 1.5% respectively.
It is not the very first time for production recovery in the second half of this year. Statistics from NBS indicated that in November Chinese daily output of crude steel was 1.6724 million tons, 49,700 tons more than that of October. And this is the second month in succession that the yield increased on a monthly basis. The latest report from China Iron & Steel Association pointed out that it reflected the accomplishment of energy-saving and emission-reduction in local places and a result to loosen production control.
In addition, prices of main steel products especially long steel products led by rebar moved up in November, which stimulated steel mills’ enthusiasm for production to some extent.
However, although steel production complex is a national trend, the yield of crude steel in December still stayed at a comparatively low level with a little of possibility to exceed 1.7 million tons per day. The gradual rise in recent two months will not put pressure on the current market, even block the market. The social stockpile in steel market is currently running at a lower level, among which the total stockpile of main steel products for the time being is 12.81 million tons more or less, down by 31% compared with the peak point in March and equals to that at the beginning of this year. With more and more deliveries from steel mills, the social stockpile will rise in a degree, but it will not go up obviously in a short term due to the shortage of absolute quantity.
It is reported by China Iron & Steel Association that judging from the current market, the demand for steel products will continue to grow. Influenced by the price increase of raw materials and the decrease of the stockpile, the price still shows a slight upward trend. Nevertheless, with the arrival of the holiday season for New Year’s Day and Spring Festival as well as the traditional low season of steel consumption, it is expected that the price will fluctuate slightly in the coming market. Form the point of the forthcoming steel market, the demand for long steel products moves up rapidly and will pull up the price to grow without stop, while the demand for flat steel products is comparatively weak and the markup will be less than that of long steel products.
The latest data released by China Iron & Steel Association yesterday showed that domestic output of crude steel continued to rise in December. In the first ten days of this month, the total output of crude steel for large and medium-sized enterprises was 14.05 million tons against 16.669 million tons estimated for the whole country, with daily outputs of 1.405 million tons and 1.667 million tons respectively, with net increase amounts of 37,000 tons and 24,000 tons month on month respectively against increase rates of 2.7% and 1.5% respectively.
It is not the very first time for production recovery in the second half of this year. Statistics from NBS indicated that in November Chinese daily output of crude steel was 1.6724 million tons, 49,700 tons more than that of October. And this is the second month in succession that the yield increased on a monthly basis. The latest report from China Iron & Steel Association pointed out that it reflected the accomplishment of energy-saving and emission-reduction in local places and a result to loosen production control.
In addition, prices of main steel products especially long steel products led by rebar moved up in November, which stimulated steel mills’ enthusiasm for production to some extent.
However, although steel production complex is a national trend, the yield of crude steel in December still stayed at a comparatively low level with a little of possibility to exceed 1.7 million tons per day. The gradual rise in recent two months will not put pressure on the current market, even block the market. The social stockpile in steel market is currently running at a lower level, among which the total stockpile of main steel products for the time being is 12.81 million tons more or less, down by 31% compared with the peak point in March and equals to that at the beginning of this year. With more and more deliveries from steel mills, the social stockpile will rise in a degree, but it will not go up obviously in a short term due to the shortage of absolute quantity.
It is reported by China Iron & Steel Association that judging from the current market, the demand for steel products will continue to grow. Influenced by the price increase of raw materials and the decrease of the stockpile, the price still shows a slight upward trend. Nevertheless, with the arrival of the holiday season for New Year’s Day and Spring Festival as well as the traditional low season of steel consumption, it is expected that the price will fluctuate slightly in the coming market. Form the point of the forthcoming steel market, the demand for long steel products moves up rapidly and will pull up the price to grow without stop, while the demand for flat steel products is comparatively weak and the markup will be less than that of long steel products.
