By Reuters – Global Times Source:Agencies Published: 2013-1-10 0:48:02
China's daily crude steel output slipped 0.5 percent between December 21 and 31 from the preceding 10 days, the third consecutive fall during the month as steel mills curbed output amid slowing demand, data from an industry portal showed Wednesday.
The average daily crude steel output in the world's largest steel producer fell to 1.9 million tons between December 21 and 31, the lowest level since end-September, industry website custeel.com said, citing data from the China Iron & Steel Association (CISA).
The daily output between December 11 and 20 dropped by 1.75 percent, the data showed.
Demand for some steel products traditionally declines during winter months as construction activity, particularly in northern regions, is dampened by cold weather, hitting consumption of long products including rebar and wire rod.
Some analysts said the output number was severely underestimated, however, as large steel mills, producing flat steel products for manufacturing, did not slash output.
"There was little chance that steel mills would give up the opportunity to raise output when steel prices rose," said Cheng Xubao, an analyst with Custeel.
Spot prices of hot-rolled coil, used in manufacturing, have risen about 23 percent since early September. The price of rebar, mainly used in construction, climbed only 6 percent since early September, according to Xiben New Line Co, a spot steel trading platform in Shanghai.
The utilization rate of 146 blast furnaces in Tangshan, North China's Hebei Province, was 98.3 percent in December, up from 91.6 percent in October, Custeel data showed.
CISA estimated the country's total production based on its members, which comprise nearly 80 large steel mills that account for about 80 percent of China's total steel output.