Production drop and low winter off take keeps Chinese steel market in limbo
Latest production release by CISA shows downtrend in production of steel in early December. December (Dec. 1-10) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China totalled 1.6951 million tonnes, down 0.81 percent compared to late November (Nov. 21-30). Meanwhile, the average aggregate daily crude steel production of all steelmakers in China in early December was estimated at 2.0129 million tonnes, indicating a decrease of 3.7 percent compared with late November.
Inventory of the main finished steel products in the major steel markets in China totalled 13.2113 million tonnes, up 1.99 percent as compared to the figure recorded on November 30 showing lukewarm off take during winter.
As mentioned earlier production has taken beating owing to Chinese government diktat to cut down 50% power consumption in Hebei region in a bid to reduce pollution. It has come as double whammy during a season typically beset with slow demand. Understandably inventory levels have shown increase despite curtailed production.
Class 12-Dec 19-Dec Change
CLPPI 6226 6206 -20
CFPPI 5629 5623 -6
CHISPI 5888 5876 -12
CLPPI – Chinese Long Product Price Index
CFPPI – Chinese Flat Product Price Index
CHISPI – Chinese Steel Price Index
Source – Strategic Research Institute
(www.steelguru.com)
Latest production release by CISA shows downtrend in production of steel in early December. December (Dec. 1-10) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China totalled 1.6951 million tonnes, down 0.81 percent compared to late November (Nov. 21-30). Meanwhile, the average aggregate daily crude steel production of all steelmakers in China in early December was estimated at 2.0129 million tonnes, indicating a decrease of 3.7 percent compared with late November.
Inventory of the main finished steel products in the major steel markets in China totalled 13.2113 million tonnes, up 1.99 percent as compared to the figure recorded on November 30 showing lukewarm off take during winter.
As mentioned earlier production has taken beating owing to Chinese government diktat to cut down 50% power consumption in Hebei region in a bid to reduce pollution. It has come as double whammy during a season typically beset with slow demand. Understandably inventory levels have shown increase despite curtailed production.
Class 12-Dec 19-Dec Change
CLPPI 6226 6206 -20
CFPPI 5629 5623 -6
CHISPI 5888 5876 -12
CLPPI – Chinese Long Product Price Index
CFPPI – Chinese Flat Product Price Index
CHISPI – Chinese Steel Price Index
Source – Strategic Research Institute
(www.steelguru.com)
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