SHANGHAI Chinas 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 month.
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 estimated.
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 previously.
"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 the rise.
Cisa vice chairman Wang Xiaoqi said recently that Chinas total steel capacity would top 1 billion tonnes in 2012.
A version of this article was first published by AMM sister publication Steel First.