Steel Association (CISA) rose during September 1-10, with the tonnage edging up by 2% or 39,000 tonnes/day from the last eleven days of August to average 1.92 million t/d, according to the latest release from the association on September 16.
Despite the production gain, the output level still represented a moderate 7.8% drop compared with the same ten days last year, the release showed.
Based on the same dataset, the association estimated that combined crude steel output among both member mills and non-member mills during the first ten days of September averaged 2.41 million t/d, rising by a marginal 0.9% from the last eleven days of August.
On the other hand, daily finished steel production among CISA member mills averaged 1.79 million t/d over the first ten days of this month, dropping significantly by 10.7% or 214,000 t/d from the late-August period, the same release showed.
The association attributed the steep decline in finished steel output to a high base of comparison from the prior eleven-day period, stating that several member mills had amassed substantial inventories in late August, as Mysteel Global had reported.
Nevertheless, the CISA release indicated that even after discounting this factor, these mills' daily finished steel output remained 8.2% below the level seen during August 21-31.
Over the early September period, speculative demand for finished steel items persisted amid the intermittent sentiment-driven boosts to the market, stemming from the several price hikes for coke and coal executed during the period.
Nevertheless, the recovery of actual steel demand has fallen short of expectations, cooling the willingness of traders to replenish stocks from member mills, Mysteel Global noted.
As a result, finished steel inventories held by CISA member mills accumulated over early September despite the lower production, with the tonnage held by the mills as of September 10 estimated at 16.52 million tonnes, nudging up by 1.7% or 270,000 tonnes from August 31, another CISA announcement released on the same day indicated.
In contrast, as of the same day finished steel stocks stored in commercial warehouses in the 21 Chinese cities CISA regularly checks thinned by 1.2% or 120,000 tonnes from August 31 to sit at 9.59 million tonnes, another release published last Sunday showed.
Source:Mysteel Global
