SHANGHAI, Oct. 18 (SMM) -- According to latest data from China’s National Bureau of Statistics, China’s crude steel output was 56.7 million mt during September, up 16.5% YoY. Output of finished steel was 76.36 million mt in September, up 18.8% YoY. Average daily crude steel output was 1.89 million mt, while average daily output of finished steel was 2.55 million mt.

End consumption remained weak in September, and tighter credit also restricted production and orders at most downstream enterprises, which in turn eroded demand for finished steel. Steelease believes average daily crude steel output in October will continue to fall slightly for two reasons.

First, tighter credit will greatly affect production and purchases at enterprises, since tighter credit has restricted orders and production in machinery, home appliance, automobile and other sectors.

Second, steel mills cut steel ex-works prices in response to plummeting steel prices, and their profit margins declined sharply, depressing their willingness to conduct production. As a result, many steel mills issue unit maintenance plans, which will affect total output of crude steel in October to some extent.