Sponsored by China Mining Association (CMA)
About Chinese Contribution
 
   
   

Home >> News >> Mining Market

China crude steel output hits record in May -stats bureau

(Reuters)
Updated: 2014-06-13 14:45
Counter:

    China's crude steel output hit a record of 70.43 million tonnes in May, up 2.6 percent from a year ago, government data showed on Friday, as steel mills in the world's biggest producer looked to meet strong demand.
   
    Steel demand in China traditionally improves in the second quarter as construction activity picks up along with warmer weather, but the slowing economy and weak property sector is expected to curb demand growth and push mills to cut output in coming months.
   
    May's output rose 2.3 percent from April and trumped the previous record of 70.25 million tonnes hit in March. Output for the first five months of the year rose 2.7 percent to 342.52 million tonnes from the same period last year, data from the National Bureau of Statistics showed.
   
    The average daily crude steel output fell to 2.272 million tonnes in May from a record 2.295 million tonnes seen in April. It has stood above 2.20 million tonnes so far this year.
   
    A rapid fall in iron ore prices, which have lost about one third and hit a 21-month low, has also helped steel mills to generate a profit of about 50-150 yuan ($8-24.18) a tonne, encouraging them to keep production high, traders said.

    But steel demand is seasonally weaker in China during the summer months that start from July as construction activity slows, while steel prices have kept falling, forcing a few small mills starting to scale back output in June.
    
    "Falling daily output rates through May (CISA members) and very weak property construction forward indicators point to growing downside risks for Chinese steel demand and output from the second half into 2015," Lachlan Shaw, a senior analyst with CBA, said in a research note.
    
    Shaw has downgraded Chinese steel output growth to 2 percent from 3 percent this year. Annual growth was 7.5 percent last year.
   
    Steel prices fell 5 percent in May and have lost 18 percent this year.
   
    Output at China's large steelmakers -- members of the China Iron & Steel Association (CISA) -- fell to 1.767 million tonnes between May 21-31, the second consecutive fall. ($1 = 6.2031 Chinese Yuan Renminbi)

 

Comment: Name ValidCode View Comment
     
  Copyright 2001-2010. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Mining Association (CMA). Without written authorization from CMA, such content shall not be republished or used in any form.
If you have any suggestion or opinion, please contact us: (8610) 66557688 or
english@chinamining.org
Note: Browsers with 1024*768 or higher resolution is suggested for this site. Mail Server