China September crude Steel output hit a second high monthly record
Saturday, 24 Oct 2009
Securities Daily quoted National Bureau of Statistics of China said China crude steel output hit a second high monthly record in September this year up by 29%YoY to 50.71 million tonnes.
The above statistics show that the oversupply is still existed in China steel market, and output is predicted to be hovered at a high level in the coming several months.
In May this year, Ministry of Industry and Information Technology planned to suspend loans on enterprises which blindly expand capacities regardless of national policy however many mills speeded up production with the monthly output hitting at 52.3 million tonnes in August.
Analysts told that in fact small mills are more unwilling to control the output. And steel price has slumped by 25% since early August, yet with CNY 300 per tonne to CNY 400 per tonne slight profits in mills’ hands. What made steel mills feel inspired was that export of steel products got improved month by month which boosted estate industry and auto sales to warm up again with sound orders.
Mr Shan Shanghua CISA General Secretary said that China steel output is estimated to arrive at 0.6 billion tonnes this year. Besides, CISA data shows the expected demand may at 0.526 billion tonnes that is to say nearly 12% output can not be digested.
Mr Liu Mingliang steel analyst with Brilliant Futures viewed that steel price is likely to keep sliding in the days to come on account of high social inventory.
