On December 27, the China Iron and Steel Association (CISA) stated that in mid-December (Dec. 11-20) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China totaled 1,623,300 mt, down 2.03 percent compared to early December (Dec.1-10). In mid-December, the average aggregate daily crude steel production of all steelmakers in China was estimated at 1,910,900 mt, indicating a decrease of 1.75 percent compared with early December.
Although Chinese domestic steel prices have witnessed a rebound since September, there has been no obvious improvement in the capacity utilization of steelmakers in China. In the September-December period, the average aggregate daily crude steel production of all steelmakers in China stood at about 1.9 million mt.
Currently, Chinese steelmakers still face low profit margins amid much higher increases in iron ore prices in comparison to increases seen in steel prices. However, the steelmakers are expected to see improved profitability in 2013 amid anticipations of greater demand for steel from railway construction, buildings construction and new urbanization projects.