SHANGHAI, Jun 24 (SMM) – China’s steel production maintained moderate growth in the middle of June, on track for a new record high of monthly output, as decent profits kept mills in high gear.
The China Iron and Steel Association (CISA) reported Tuesday that crude steel output across major mills in China averaged 2.14 million mt per day in the second 10 days of June. That was the highest on record and up 1.57% from the level seen in early June.
Daily crude steel output for mid-June was 2.89% higher than the average level for the full month of May, and 3.74% higher than the same period last year, according to the CISA report.
Compared to early June, average daily production of pig iron across those mills rose 1.59% to 1.91 million mt in the middle of June, while that of steel products jumped 4.82% to 2.08 million mt.
As of June 20, inventories of steel products across those mills stood at 14.62 million mt, up 797,400 mt, or 5.77%, from June 10. The stocks were 5.09 million mt, or 53.36% higher than the beginning of the year.
SMM calculations showed that profits at blast furnace mills in China steady at 200-400 yuan/mt, which are high enough to prompt mills to operate at rates of above 90%.