China daily crude steel output decreased sharply in August
2010-09-10 09:21:52 【Print】
BEIJING (Asian Metal) 10 Sep 10 – The latest data from China Iron and Steel Association shows that daily output of crude steel in China decreased sharply in August. Outputs of CISA’s listing steel enterprises and nationwide steel makers were 15.38 million tons and 18.5 billion tons respectively, with daily outputs of 1.4 million tons and 1.68 million tons.
China output in last ten days this August decreased by 30,000tpd compared with that in previous ten days, and the markdown was 2% more or less. According to the figure, the daily output in August was just a little more than that of 1.66 million tons in July, but much less than the highest level of 1.87 million tons in April and May.
Analysts consider that the sharp decease in late August was mainly caused by the policy of limited electricity supply in some regions in succession. The daily output of crude steel this September is expected to continue the downward trend which may reduce to 1.52-1.57 million tons. According to the predication, the national crude steel production is very likely to decrease by 5 million tons or even more this month.
Influenced by the published plan of limited electricity supply, production reduction in Hebei, Shandong, Jingsu and Shanxi may reach 17 million tons, 2 million tons, 2.2 million tons and 1.6 million tons respectively in rest four months this year. Including other provinces, the total reduction is expected to get 25.7 million tons, and it will bring supply decrease of 9.6% of crude steel. As participants' expectation, the reducing production will be favorable to the steel price in spot market in following days.
China output in last ten days this August decreased by 30,000tpd compared with that in previous ten days, and the markdown was 2% more or less. According to the figure, the daily output in August was just a little more than that of 1.66 million tons in July, but much less than the highest level of 1.87 million tons in April and May.
Analysts consider that the sharp decease in late August was mainly caused by the policy of limited electricity supply in some regions in succession. The daily output of crude steel this September is expected to continue the downward trend which may reduce to 1.52-1.57 million tons. According to the predication, the national crude steel production is very likely to decrease by 5 million tons or even more this month.
Influenced by the published plan of limited electricity supply, production reduction in Hebei, Shandong, Jingsu and Shanxi may reach 17 million tons, 2 million tons, 2.2 million tons and 1.6 million tons respectively in rest four months this year. Including other provinces, the total reduction is expected to get 25.7 million tons, and it will bring supply decrease of 9.6% of crude steel. As participants' expectation, the reducing production will be favorable to the steel price in spot market in following days.
