China Robust steel output

17 May 2022
China Robust steel output

          China's pig iron output in April reached 76.78 million mt, averaging 2.55 million mt/day, up 10.80% on the month, National Bureau of Statistics data showed May 16.

          April’s figure was unchanged on a yearly basis, as NBS revised the pig iron output in April 2021 from 75.97 million mt to 76.78 million mt.

          China’s crude steel production in April was still 5.20% lower on year at 92.78 million mt, but the daily output rose 8.60% on the month to 3.09 million mt, breaching the 3 million mt level for the first time since July 2021.

          China’s pig iron and crude steel output in the first four months totaled 280.30 million mt and 336.15 million mt, still 9.40% and 10.30% lower on the year, respectively, according to the NBS data.

          Some market sources expected China’s pig iron and crude steel output in May to be at similar levels of April.

          China’s electric arc furnace, or EAC, steelmakers were seen reducing their steel production owing to loss-making market conditions. However, output cuts were barely reported at integrated steelmakers that use a blast furnace and a converter route, as they were still posting thin profits or only marginal losses, according to sources.

          As the suspension and restarting of blast furnaces is costly, marginal losses do not push steelmakers to cut pig iron and crude steel production.

Source : Steel Business Briefing

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