SHANGHAI Chinas daily crude steel output surpassed 2 million tonnes in mid-February, up 0.9 percent from the first 10 days of the month, according to China Iron and Steel Association (Cisa) estimates.
Production averaged 2.006 million tonnes per day during the second 10 days of February, up from nearly 1.989 million tonnes daily in the previous 10 days. Daily production had been below that level since late May 2012.
Cisa members daily output increased 1 percent to 1.719 million tonnes in mid-February.
"Chinese mills were using relatively cheaper iron ore in mid-February. Major mills had also been making ex-works hikes since November," an industry analyst in Beijing told AMM sister publication Steel First. "Good profit margins encouraged them to produce more." However, market trading was suspended in mid-February due to the weeklong Chinese New Year holiday.
Major mills inventories are now at the highest level since August, the analyst added.
A version of this article was first published by AMM sister publication Steel First.