According to the figures released on October 22 by China's National Bureau of Statistics, the country's crude steel production in September reached 50.71 million mt, up 28.7 percent year on year, constituting the second-highest monthly figure for the current year. In the month of September, China's daily output of crude steel peaked at 1.69 million mt - a new historical high.
During the first nine months of 2009, China's total crude steel production amounted to 420.4 million mt, up 7.5 percent year on year. In addition, China's pig iron production totaled 47.92 million mt in September, up 27.7 percent compared with the same month last year, while finished steel production for the month in question was 61.16 million mt, up 31.6 percent year on year. An official from the China Iron and Steel Association (CISA) commented that, based on the current production levels, China's crude steel production for the whole of 2009 would reach 560 million mt.
According to some analysts, Chinese mills are generally bullish as regards the market situation in the fourth quarter, which is the main reason for the recent high levels of crude steel production. Moreover, since steel prices are still above cost levels, mills currently continue to be able to make some profit and thus seem unwilling to cut production.
Earlier, China Iron and Steel Association (CISA) secretary general Shan Shanghua warned that with 560 million mt of crude steel production for the whole year, and also taking into account the decrease of 40 million mt in steel exports, China's newly-added supply of crude steel in 2009 would exceed 100 million mt.