SHANGHAI, Jul. 19 (SMM) – China produced 73.23 million tonnes of crude steel in June, up 5.7 per cent on a yearly basis, and YTD output grew by 4.6 per cent to approach 420 million tonnes, according to China’s National Bureau of Statistics.
China’s daily output of crude steel was 2.44 million tonnes in June, a new record high, and calculating on the data, the annualized output in theory is estimated to reach 890 million tonnes, far higher than market expectation.
Output is down slightly in July based on data available.
Daily output of crude steel at members of China Iron & Steel Association (CISA) was 1.85 million tonnes during the first ten days of the month, down 17,000 tonnes or 0.91 per cent from the previous level, and the nation’s daily output is estimated at 2.34 million tonnes during the same period, down 13,400 tonnes or 0.57 per cent.
Chinese government has taken a series of measures to crack down illegal steel capacities, and plan to eliminate all “Ditiao Steel” before June 31, a Chinese name for low-quality steel produced in intermediate frequency furnace with steel scrap as raw material, as well as rolled steel products produced with such steel as raw material.
Production enthusiasm at domestic steel mills is fueled by high profits, including those be scheduled to be phased out. One official from China’s National Development&Reform Commission expressed government’s zero tolerance over this, and will carry out new inspections to prevent coming-online of illegal capacities.