crude steel output increased further in November as steelmakers
rushed to boost production on price gains.
State-owned and large
steelmakers who are also members of the China Iron and Steel
Association (Cisa) contributed most to the increase this
Daily crude steel output totaled
1.64 million tonnes in the first 10 days of November, according
to the association. This is up 7.8 percent from 1.52 million
tonnes per day in the final 10 days of October and marks the
highest level since late July, Cisa said.
National crude steel output,
which includes production from Cisa members and nonmember
steelmakers, was up 1.6 percent in early November, Cisa
The countrys crude steel
output stood at 1.96 million tonnes per day in the first 10
days of the month, up from 1.93 million tonnes per day
"The large rise in production
has already put pressure on the market and may even lead to
another round of price decreases if steel mills do not trim
production as soon as possible," a major trader in Shanghai
told AMM sister publication Steel First.
Chinas hot-rolled coil
prices, which saw a strong rise in the first two weeks of
November, started to drop at mid-month.
In Shanghai, commercial-quality
hot-rolled coil (4.5 to 12 millimeters) was changing hands at
3,900 to 3,960 yuan ($620 to $630) per tonne Nov. 20, down 20
to 30 yuan per tonne from the day before. This compares with a
Nov. 15 peak of 3,990 to 4,020 yuan per tonne.
Despite lower investment in the
steel sector this year, Chinas steel capacity is still on
Cisa vice chairman Wang Xiaoqi said recently that
Chinas total steel capacity would top 1 billion tonnes in
A version of this article was first
published by AMM sister publication Steel