The China Association of Ferrous Metallurgy (CISA) announced that in early October (October 1-10) this year, the average daily volume of crude steel production at large and medium-sized metallurgical enterprises in China - all CISA members - amounted to 1,939 million tons, which is 3.1% more than at the end of September (September 21-30) this year.
At the end of September, the average daily volume of crude steel production at large and medium-sized enterprises in China totaled 1.881 million tons, which is 2.1% less than in mid-September (September 11-20) of this year.;
Inventory levels at large and medium-sized steel mills in China have increased over the period. As of October 10, stocks of finished steel at large and medium-sized metallurgical enterprises in China amounted to 16.97 million tons, an increase of 8.4% compared to September. 30.
As already mentioned, average daily crude steel production increased by 3.1 percent in early October, while inventory levels increased by 8.4 percent over the period. The faster growth of stocks compared to production volume indicates a certain mismatch between supply expansion and demand absorption, and therefore, in the short term, the Chinese steel market may face a reduction in stocks.
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