China crude steel production in mid-April slowed down, steel prices rebounded

May 12 MetalBiz--Crude steel production has slowed down. According to statistics of 67 companies (accounting for around 77% of national productions), they made a total of 10.93 million tons of crude steel production with a daily output of 109mln tons in mid-April, reduced 31,000 tons over early April, down 2.8%. According to preliminary calculations, the total crude steel production in early April and mid-April was 28.23mln tons, an average of 1.41mln tons of crude steel production sinking 3.1% over the average daily output in March, but still higher than last year's daily average of 1.37mln tons.

The declining rate of steel inventories has increased. Since April, steel stocks continued to fall back. Till mid-April, steel stock of major cities in the country was 9.96mln tons, reduced 880,000 tons than at the end of March, down 8.1% (stocks of at the end of March fell 4.2% than that of at the end of April). Stock of construction steel dropped more significantly, in mid-April, stocks of wire rod and debar were 1.25mln tons and 3.59mln tons, down 11.8% and 20.9% than at the end of March; stocks of hot-rolled sheet, cold-rolled sheet and medium and heavy plate were 2,680,000 tons, 1,180,000 tons and 1,260,000 tons, decreased 1.5%, 0.8% and 1.6% over at the end of March.

Steel prices presented bounce trend. The spot prices of wire rod, rebar began continuing to rebound from the third week in April, on April 20th, quotations being 3387 yuan per ton, 3441 yuan per ton, respectively rising 82,74 yuan per ton compared to the lowest price of this year; the boundce of plate prices lagging behind long products, hot-rolled sheet, medium and heavy plate prices started to rebound on April 17th and 20th, prices on April 20th at 3319 yuan per ton, 3280 yuan per ton, up slightly 87,17 yuan per ton than the lowest price.

In mid-April, the national daily average generating electricity was 9.14bln kwh, glided 3.9% on an annual basis, a slight increase in fall degree than in early April. Decline in electricity consumption has a tie to the recent slowdown of production of iron and steel industry to some extent. In addition, the recent rebound in steel prices mainly has been affected by the North gradually to the construction season, the increasing demand for steel products, as well as dealers’ adding inventory. In the situation of overall steel production capacity surplus and market demand not be significantly improved, the future trend of steel market still needs calm observations.