Chinese steel output and stocks up in mid October amid pause
Nov 06, 2019
Chinese steelmakers pushed their production up in October 11-20, as they hadbeen forced to lower numbers during the first week of the month. Market prices remained under pressure of oversupply in November as well.
Daily crude steel output of major large and medium scaled mills increased by 3.4%or 64,800 t over ten days to 1.95 million t in the middle of last month, accordingto the latest data published by China Iron and Steel Association (CISA) on Tuesday. The rise was mainly attributed to steelmakers’ attempts to maximize theirutilization rates after restrictions during National Day holidays in early Octoberand ahead of another wave of restrictions late last month. However, demand wasnot improving at the same pace with production, Chinese insiders have told MetalExpert.
Finished steel inventories at CISA member mills increased even faster – by 6.45%or 804,100 t to 13.27 million t on October 20. The high levels of output and stockscontinued to weigh on market prices and sentiments. The situation still did notchange significantly in early November. “Demand is not good now and outlook isalso quite pessimistic for the near future,” a major privately owned steelmaker inEastern part of the country told Metal Expert. “No mills have intentions to reduceoutput in the near future, and even no big maintenances are expected in November,” he added.
