Daily output of crude steel in China reached 2.0994Mt in October, which works out at 65.08Mt for the month, up 9.2% from the same period last year, according to China Metals.

The figure for January to October 2013 was up 8.3% at 652.48Mt and the output of steel products was 888.32Mt for the same period, an increase of 11.6% year-on-year. October steel production was up 12.3% at 92.81Mt.

China’s major steelmakers produced 1.7627Mt of crude steel during the first 10 days of November, up 3.49% from the previous 10 days, according to the China Iron and Steel Association (CISA). From 1 to 10 November 2013, the daily nationwide crude steel output was estimated at 2.1442Mt, up 2.18% from the figures for 21 to 31 October.

Minor Chinese steelmakers produced 382kt of steel on average during the period, which was 13.6kt less than the previous 10 days, accounting for 17.8% of China’s entire daily crude steel output for the period, which was down by 1%.

According to CISA, total stockpiles at major steelmakers rose by 0.39% to 12.926Mt by 10 November and the forecast for annual crude steel output for 2013 is up 9% at 780Mt.

With demand for crude steel forecast at 730Mt (up 8.9%), 99% of major Chinese steel producers’ output was, according to CISA, sold out. Crude steel output will reach 800Mt in 2014 (although real output will be closer to 830Mt) with demand reaching 760Mt.

Chen Kexin, chief analyst with Lange Steel, believes consumption this year will be closer to 800Mt due to an increase in production and a drop in stockpiles.

H1 2013 saw Chinese steel consumption rise 5% as the Government adopted tight policies to manage the macro economy, according to China Metals. During H2 2013 the Government focused on infrastructure construction environmental protection, transport and real estate, which boosted both steel demand and imports.

China’s 86 major steelmakers made a combined profit of RMB11.3 billion from January to September, compared to an RMB6 billion loss for the same period last year, claims CISA.

Overcapacity, high energy consumption and pollution will continue, claims CISA.

Source: China Metals.