China’s output of crude steel may reach around 706Mt in 2011, far exceeding the prediction of 660Mt forecast at the beginning of the year, according to the China Iron and Steel Association (CISA).

The latest prediction was made on the basis of the crude steel output in the first half of this year when the country’s crude steel output reached 350Mt, up 9.6% from a year earlier.

China’s daily output of crude steel has stayed high since this year with the steel price going up amid robust demand from the construction sector.

China’s daily output of crude steel fell slightly to 1.9053Mt in the August 21-31 period, according to industry estimates released by CISA.

The figure is 2.13% lower than the daily output in the August 11-20 period of 1.947Mt. Throughout August, daily crude steel output averaged 1.9351Mt, up 1. 16% from the previous month, said CISA.

The rising price for steel has improved the performance of steelmakers, which have been struggling in loss or meagre profit, although any profit remains very low.

China’s steel industry is in a dilemma of high production and low profit, noted by Zhu Jimin, president of the CISA. Meanwhile, the level of steel production is making difficulties in the country’s effort to phase out obsolete production capacities.

Source: China Metals e-mail