Daily steel production in China hit a 4-month low in early July

Daily crude steel production in China continued to decline during the first ten days of July and hit a four-month low of 2.73 million tons per day, another 95,300 tons per day or 3.4% less than at the end of June, according to Mysteel. based on his regular data. survey among 247 blast-furnace and 85 electric steel plants throughout the country.

The July result was 10.1% lower compared to the same period last year, as more domestic plants carried out early maintenance of their steelmaking facilities in response to losses they suffered due to falling prices for finished steel. Meanwhile, reduced demand from end consumers during the summer off-season has also dampened mill enthusiasm for production, Mysteel Global notes.

As of July 8, China's national price for 20mm HRB400E rebar, for example, was estimated by Mysteel at 4,278 yuan per ton (US$638 per ton), including 13% VAT, down 109 yuan per ton from the end of June .

Physical market operations also slowed due to rising temperatures in most parts of China. From July 1 to July 10, the daily trading volume of structural steel, including rebar, wire rod and coiled bars, among 237 Chinese trading houses monitored by Mysteel averaged 152,125 t/d, up 15,784 t/d or 9. 4% less. of this at the end of June.

DP and EDP reduced production volumes in early July. Another study by Mysteel showed that capacity utilization among 247 selected blast furnaces fell in the third week by 1.9 percentage points on the week to a three-month low of 85.71% for the July 1-7 period. Meanwhile, among the 85 electric steel mills, the figure has been declining steadily since mid-May and averaged 31.67% over the same period, another 3.92 percentage points lower than the previous week.

Stocks of finished goods held by Chinese steelmakers have been further depleted due to the continued decline in output. Mysteel's regular survey showed that the total volume of the top five carbon steel products, including rebar, wire rod, hot-rolled coil, cold-rolled coil and middle plate among 184 steelmakers inspected, decreased to 6.23 million tons from June 30 to July 6 . , down 3% for the week and reaching its lowest level since the end of March, as reported.