Chinese crude steel production continued to inch higher in mid-June, following a strong beginning of the month, as mills benefited from healthy steel margins and improving end-user demand.

          China Iron and Steel Association, or CISA, reported that output from its members averaged 2.142 million mt/day over June 10-20, up by 1.6% compared with early June and 3.7% higher on the year. This was the sixth consecutive increase.

          CISA estimated that China's total crude steel (including non-CISA affiliated mills) over mid-June averaged 2.985 million mt/day, up 0.8% from early June and 5% on the year respectively.

          However, finished steel stocks as of mid-June totaled 14.62 million mt, up 5.8% from early June and an 11% rise on the year, CISA reported.

          Market sources said infrastructure and property were the main driver for steel demand and expected both would also bring more momentum in the second half of the year.

          One analyst based in Shanghai added that car and home appliance sales also had better performance, which pushed up production.

          The yearly growth rate of China’s production of air-conditioners, washing machines, freezers and refrigerators over January-May 2020 dropped by 17% on the year, against a 19% drop over January-April and a fall of 35% at the beginning of year, data from China's National Bureau of Statistics showed.

-- Paul Bartholomew, Analyst Sylvia Cao