China's daily steel output hits a 3-month high in mid-September

China's daily crude steel production continued to rise in mid-September, with output rising to a three-month high of 2.89 million tonnes per day on average, up another 25,900 tonnes per day, or 0.9%, from the previous ten days, Mysteel calculated based on a regular survey of 247 blast furnaces and 85 electric steel plants across the country.

The increase in production in mid-September was mainly because some blast furnace steel mills resumed operations or steadily ramped up production after previous production cuts, while electric arc furnace steel mills slowed down as many began to lose money due to rising prices. for scrap metal, Mysteel Global noted.

The results were in line with another study by Mysteel, which showed that the capacity utilization rate among 247 sampled DOs increased for the seventh consecutive week by another 0.76 percentage point on the week to 88.32% on average from September 9 to 15. while for the 85 electric steel mills surveyed over the same period, the rate fell to 51.84%, down 0.25 percentage points from the previous week.

Finished steel prices in China eased in mid-September as end-user demand in eastern China was impacted by Typhoon Muifa. In addition, speculative demand was also weak on the back of negative sentiment in the domestic market, Mysteel Global learned.

As of September 20, the national price of 20mm HRB400E rebar, a benchmark for domestic steel market sentiment, was priced at 4,106 yuan per tonne ($582 per tonne) by Mysteel, including 13% VAT, representing a reduction of 29 yuan per ton. t since September 9th.

Between September 11 and 20, the daily trading volume of construction steel, including rebar, wire rod and coiled bars, among the 237 Chinese trading houses monitored by Mysteel averaged 157,556 t/d, down 13,477 t/d or 7 ,nine%. from this to the beginning of September.