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China Daily Crude Steel Output Rises to 2 Million tonnes
Add Time：2012-06-28 23:56:00 Clicks：
China Iron and Steel Association said China steel mills produced an average of 2 million tonnes of crude steel a day over the June 1-10 period, edging back to the record levels reached in early May as large mills ramped up output.
Total inventories held by large and medium sized steel mills in the first 10 days of June were 11.51 million tonnes up by 0.14% from the previous period and a 35% jump since the start of the year.
Although small and medium sized mills have begun to pare output, CISA data shows that large steel makers in China, the world biggest steel producer and consumer, raised production to increase economies of scale, which would help boost their profit margins.
Despite sluggish demand, steel output in the country remains high as large mills prefer to keep their margins razor-thin rather than lose market share to other rivals in the country fragmented sector.
Mr Hu Yanping an analyst at consultancy firm CUsteel said however, the poor demand may soon hit the mills. He said that "We're beginning to see more mills extend their maintenance schedules because of a combination of weak demand and poor profitability. So overall production will likely fall in June."
Chinese steel prices, as measured by rebar futures in Shanghai, are down around 1% this year.
Source - Reuters
Total inventories held by large and medium sized steel mills in the first 10 days of June were 11.51 million tonnes up by 0.14% from the previous period and a 35% jump since the start of the year.
Although small and medium sized mills have begun to pare output, CISA data shows that large steel makers in China, the world biggest steel producer and consumer, raised production to increase economies of scale, which would help boost their profit margins.
Despite sluggish demand, steel output in the country remains high as large mills prefer to keep their margins razor-thin rather than lose market share to other rivals in the country fragmented sector.
Mr Hu Yanping an analyst at consultancy firm CUsteel said however, the poor demand may soon hit the mills. He said that "We're beginning to see more mills extend their maintenance schedules because of a combination of weak demand and poor profitability. So overall production will likely fall in June."
Chinese steel prices, as measured by rebar futures in Shanghai, are down around 1% this year.
Source - Reuters