According to data released by the China Iron and Steel Association (CISA), key steel enterprises recorded average daily production in late December as follows: crude steel at 1.872 million tons, pig iron at 1.734 million tons, and finished steel at 1.976 million tons. These figures represent year-on-year increases of 8.7%, 12.4%, and 2.8%, respectively

However, compared to the previous period, crude steel and pig iron production dropped by 5.3% and 4.4%, while finished steel production rose slightly by 0.4%. Notably, daily crude steel output at major steel enterprises has declined for three consecutive reporting periods, primarily due to increased production cuts at mills earlier on.

Last week, inventories of the five major steel products in China increased for the second consecutive week. However, inventories of construction steel remain at a five-year low for this time of year, reflecting weak enthusiasm among traders for winter stockpiling.

Meanwhile, flat steel inventories are relatively high. Blast furnace operating rates showed a slight recovery, while electric arc furnace capacity utilization continued to decline. Transaction volumes for major steel products also fell for consecutive weeks. Domestic steel market prices continued their downward fluctuation amidst these conditions.

--Steelhome