Chinas steel output reached a record high in March, as
mills ramped up output in response to higher prices.
Daily production of crude steel rose to 1.986 million tonnes, a
3.1% increase from February, and 6.4% higher year-on-year,
according to the National Bureau of Statistics.
The figures, much higher than earlier estimates from the China
Iron & Steel Assn, suggest an annualised output of 725
Steel mills, especially long product mills, were
encouraged to raise production in March with spot steel prices
edging higher, a trader in Shanghai said.
The higher output raises the risk that Chinas mills will
bring production back on line too quickly.
Production was up 10.3% month-on-month, or 3.9% higher
year-on-year, to 61.58 million tonnes, which equates to about
739 million tpy.
Cisa published separate figures for steel production which
analysts say consistently underestimate output from smaller
Cisas daily figure for March was 1.904 million, which
over the full month creates a gap of 2.5 million tonnes
compared with the NBS statistics.
Production for the first three months of 2012 also rose 2.5%
year-on-year to 174.2 million tonnes, NBS said.