Steel Output

         According to National Bureau of Statistics, China’s crude steel, pig iron and finished steel products output in August totaled 83.24 million tons, 71.53 million tons and 108.8 million tons, down 13.2%, down 11.1% and down 10.1% year on year.

         Daily average output of crude steel, pig iron and finished steel products during the period was 2.6852 million tons, 2.3074 million tons and 3.5097 million tons, down 4.1%, down 1.8% and down 2% respectively from last survey.

         Steel Supply

         It is estimated that China’s crude steel and finished steel products supply reached 80 million tons and 104.81 million tons in August, down 17.6 million tons or 18% and down 14.78 million tons or 12.4% year on year.

         China’s crude steel output fell rapidly in August, with daily average output of 2.6852 million tons, down 4.1% month on month. According to calculations that do not exceed the level of last year for the whole year, the daily average crude steel output in the next four months should not exceed 2.719 million tons.

         Recently, steel mills in Jiangsu, Guangxi, Yunnan and Shandong accelerated the process of production reduction, and crude steel output will probably further decline. According to SteelHome survey, steel market inventories dropped slowly since August. At present, market supply and demand are in balance. However, with the reducing crude steel output and increasing seasonal demand, steel inventories will probably continue to decline.

--Steelhome