According to the China Iron and Steel Association (CISA), in the first 20 days of February domestic crude steel production and finished steel inventory levels in China both indicated a significant recovery. The increase in crude steel output has been mainly due to the improvement in the profit margins of domestic steel producers.
In the mid-February period (Feb. 11-20), China's overall average daily output of crude steel reached 1.814 million mt, registering an increase compared to 1.703 million mt in the corresponding period of January. In the early February period (Feb. 1-10), average daily crude steel output in China amounted to 1.8 million mt, up six percent compared to the 1.703 million mt recorded in the January 1-10 period.
Meanwhile, it is worth noting that the inventory levels of finished steel products held by key domestic steel producers as of February 20 had increased to 9.46 million mt, up from 7.57 million mt at the end of January.
During the mid-February period, the 77 steelmakers which are members of the CISA produced an aggregate of 15.949 million mt of crude steel, with all domestic steel enterprises producing a total of approximately 18.14 million mt of crude steel during this period.
The CISA also predicted that China's consumption of crude steel in 2011 will reach around 632 million mt, up by 30 million mt or five percent year on year.