Chinas daily crude steel output and major mills
inventory continued to rise in mid-September, adding more
supply pressure to the market.
The country produced
2.144 million tonnes per day of crude steel in the second 10
days of September, up from 2.129 million tonnes daily in the
preceding 10 days, according to estimates released Sept. 26 by
the China Iron and Steel Association (Cisa).
Output by Cisas
member mills, which are mainly medium to large-sized
steelmakers, averaged 1.7795 million tonnes per day vs. 1.7625
million tonnes daily in the same comparison.
As of Sept. 20,
combined steel inventory at Cisas member mills reached
13.22 million tonnes, up 625,700 tonnes (5 percent) from Sept.
"This is not a good
sign," a Shanghai-based analyst told AMM sister
publication Steel First. "Production up again but
demand seems (to show) no improvement, which could weigh on
prices in October."
Domestic steel prices have already dropped following
continuous production increases since late August, with
hot-rolled coil at 3,500 to 3,520 yuan ($569 to $573) per tonne
in Shanghai Sept. 26, down 110 yuan ($18) per tonne from Aug.
A version of this
article was first published in AMM sister publication Steel