Lower-than-expected Consumption Drove Down Building Steel Output in April

The average weekly rebar output stood at 2.95 million mt in April, down 2% month-on-month. And the weekly average consumption stood at 3.18 million mt, down 4.8% month-on-month. Steel consumption was lower than expected in the second half of April.

After the steel prices plummeted, steel mills mainly using EAFs took the lead in reducing production, and then steel mills mainly using blast furnaces also lowered building steel output.

On the demand side, building steel consumption surged in March, but the rainy season, holidays, and insufficient real estate and infrastructure stock projects hampered the overall steel consumption performance, missing expectations. In May, the rainy season and high temperatures will be major headwinds for domestic construction steel market. But given the strong policy supports for real estate and infrastructure, demand for building steel will be stable.

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