The China Iron and Steel Association (CISA) has announced that in late April (April 21-30) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 2.2067 million mt, down 3.63 percent compared to mid-April (April 11-20) this year.
In mid-April this year, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China totaled 2.2898 million mt, down 1.38 percent compared to early April (April 1-10) this year.
Inventory levels in the Chinese steel market increased in the given period. As of April 30, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 18.1103 million mt, decreasing by 2.32 percent compared to April 20.
As of April 30, rebar futures at the Shanghai Future Exchange were standing at RMB 3,660/mt ($529/mt), decreasing by RMB 254/mt ($1/mt) or 6.5 percent since April 20.
In late April, Chinese steelmakers reduced their production, aiming to ease the pressure from the supply side. Rebar futures prices indicated big increases on the morning of May 8, rising by 3.15 percent compared to the previous trading day. As for May, market players think the demand for steel may remain slack, which may exert a negative impact on steel prices.
Some steelmakers stated that they had been too optimistic as regards the prospect for the steel market in the first three months this year, which resulted in rises in crude steel output and pushed up raw material prices, while steelmakers’ profitability declined in the given period.
