|
|
China's daily crude steel output rose 1.1percent in early August from late July, belying expectati*** for a modest fall, as many steel mills resumed productionafter a round of brief maintenance in mid-July, industry sources said.
The persistent supply glut and swollen inventories will curb gains in steel prices in autumn when demand traditionally improves as c***truction projects pick up, putting further downward pressure on iron ore prices.
Daily crude steel output was 1.970 million tonnes in the first 10 days of August, up from 1.949 million over July 21 to 31, industry c***ultancy Custeel.comsaid on Friday, citing data from the China Iron & Steel Association (CISA).
"The only reason that comes to my mind is that steel mills have resumed production after this round of maintenance since mid-July," said Qiu Yuecheng, an analyst with Xiben New Line Co Ltd, a spot steel products trading platform in Shanghai.
"Amid fears of losing market share and urging by local governments to maintain economic growth as well as the rapid fall in iron ore prices, steel mills are reluctant to cut production in a big way," Qiu added.
Shanghai steel futures fell to record lows on Friday, hitting 3,614 yuan ($570) a tonne, and are heading for their fifth weekly loss in six, trapping iron ore, the key steelmaking raw material, at 2-1/2-year troughs.
CISA estimated the country's total production based on its members, which comprise more than 70 large steel mills that account for about 80 percent of China's total steel output.
Steel demand has remained weak since the start of this year as the world's second-largest economy grows at its slowest pace in more than three years.
"I haven't seen any signs that prices will stabilize yet, but there is still big downside pressure ahead," said a Beijing-based steel trader.
CISA said on Thursday steel prices were expected to stay weak in the next few months as a supply glut and highinventories will offset an expected increase in demand despite measures by Beijing to spur economic growth.
China produced 1.99 million tonnes of crude steel on a daily basis in July, down 0.8 percent from June.
Changes in daily output since the beginning of the year. |
|
发表于 2012-8-18 12:03
提升卡
变色卡