According to the new data issued by the China Iron and Steel Association (CISA), in mid-June (June 11-20), Chinese average daily crude steel production was 1.767 million mt, down 17,000 mt from the early June period and also registering a decrease of 106,000 mt compared with the late April daily output of 1.873 million mt, which is the highest level reached so far this year.
After peaking in mid-April, steel prices started to trend down in the local Chinese market, followed by decreases in crude steel output. In May, the average daily output of crude steel was 1.805 million mt, lower than the average daily output of 1.821 million mt in April
The decline in Chinese crude steel output has mainly been due to the continuous downtrend of steel prices against the background of a relatively stable trend in raw material prices. Nevertheless, some domestic large and medium sized producers are now facing pressure from inventories as a result of the inactivity in downstream bookings and the shrinkage of exports. It is expected that these producers will try to speed up the sale of stock materials in the future. As a result, it is thought that steel prices in China will trend down further.