The China Iron and Steel Association (CISA) has announced that in late May (May 21-31) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 2.006 million mt, down 4.3 percent compared to early May (May 1-10) this year.
In mid-May (May 11-20) this year, the average aggregate daily crude steel output of the large and medium-sized steel enterprises in China had totaled 2.096 million mt, down 0.7 percent compared to early May (May 1-10) this year.
Inventory levels of the large and medium-sized steel enterprises in China also decreased in the given period. As of May 31, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 15.83 million mt, decreasing by 15.7 percent compared to May 20.
The more rapid decline in inventory levels compared to crude steel output in late May reflected the improved demand in the given period. Though the short-term supply-demand balance in the steel industry has improved marginally, market players will need to pay close attention to whether this “off-season strength” is genuine and whether the production cuts can be sustained.
