China Steel Industry Association data showed that in mid January, China's crude steel estimated daily output expected to reach 1.669 million tonnes down 1.3% late chain in the past 2 years to a lower level.

Data and key steel enterprises in mid January crude steel output was 1.488 million tonnes, the mid ring down 0.27%. In early January, the average daily production of crude steel is about 1.6906 million tonnes compared with 2011 the average level of 1.8613 million tonnes, 9.17% lower.

Some analysts said crude steel production level remained low and helps to ease the contradiction between supply and demand of the steel market but also side to stimulate the steel price increases to compensate for the benefits of lower production fell.

By the end of market downturn and weak overall demand impact, since the Q4 of last year, Chinese steel production has been maintained at a low level.

National Bureau of Statistics data showed that Chinese crude steel output has reached to 5,216 tons in December 2011 which has increased 0.7% YoY.

Mr Zhu Jimin of China Steel Industry Association said earlier that because of the raising cost, the weak market demand and financing difficulties those multiple factors will cause the entire steel industry in 2012 to face the pressure of high costs high inventory and low selling price.

(Sourced from www.yieh.com)