China's steel output decreases month on month in July

SteelOrbis Shanghai The latest figures released by China Iron & Steel Association (CISA) indicate that, Chinese pig iron production increased 22.9 percent year on year to 34.7091 million metric tons in July 2006, while crude steel production increased 22.2 percent to 36.0906 million metric tons, and finished steel increased 22.5 percent to 38.6598 million metric tons. However, Chinese crude steel and finished steel production for July declined remarkably month on month. 1.164 million metric tons daily crude steel production, which is equal to May's figure, is 56,400 metric tons or 4.62 percent less than that of June. Meanwhile, daily finished steel production is 1.25 million metric tons in July, down 126,000 metric tons or 9.19 percent month on month. The main reason for the month on month decrease is the dead season in July and August regarding steel consumption in China. In these two months, most of the steel mills arrange overhauling activities which lead to the production decline. From January to July, the cumulative pig iron production reached 228.0483 million metric tons, up 21.10 percent year on year; that of crude steel reached 236.0365 million metric tons, up 18.90 percent; that of finished steel reached 259.8955 million metric tons, up 25.10 percent. On product basis, rebar production for July increased 11.9 percent year on year to 6.7974 million metric tons; wire rod increased 24.7 percent to 6.252 million metric tons, medium wide strip increased 7.8 percent to 3.8311 million metric tons; cold rolled sheet production increased 45.5 percent to 1.0173 million metric tons; hot rolled sheet production increased 134 percent to 515,900 metric tons, hot rolled thin & wide steel strip increased 44.1 percent to 1.3619 million metric tons.