China’s monthly production reached 50.7Mt in September, second only to August during the year.

The volume represented a daily output of a new high of 1.69Mt. The production figure was 28.7% increase on the same month last year while total output in Jan-Sept was 420.4Mt, up 7.5% y-o-y.

Rolled steel output growth reached 31.6% y-o-y in September, in which long products’ output grew 38.57% y-o-y. Among long products, medium/light section and bar’s output growth reached 46.5% and 43.6% respectively, which illustrates strong demand for these products.

Apparent consumption of steel amounted to 50.38Mt, up 51.9% y-o-y while aggregate consumption in Jan-September was 421.92Mt, up 20.6% y-o-y. Production expansion led to price falls, and with increased stocks, major steelworks further reduced ex-work prices, rather than their daily output.

There is little possibility for local mills to lower production, and the whole-year output could be 550Mt, with prices stagnant.

Source: China Metals e-mail