Despite the outbreak of the COVID-19 pandemic that caused the industry’s global growth outlook to collapse, China recorded an increase in crude steel production of up to 5.2%, touching 1.053 million tons.
The price of iron ore for September futures on Dalian bourse on June 25 increased by 0.9% to 1,165 CNY/ton; iron ore 62% of spot imports at Chinese seaports on June 24 remained unchanged from the previous session, remaining at $219/ton, ,
The price of rebar, used in construction, traded on the Shanghai floor, for the term of October, 2021 increased by 0.7% to 4,933 CNY/ton; Hot-rolled coil, used in the production of cars and home appliances, rose 0.4 percent to CNY 5,160 a tonne.
Steel price delivered in October 2021 on the Shanghai Exchange increased by 30 CNY/ton to 5,006 CNY/ton.
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China recorded an increase in crude steel output of up to 5.2%, touching 1.053 million tons.
In May 2021, flat steel inventories of German steelmakers increased for the first time since August 2020 from historic lows.
Specifically, the average flat steel inventory in May 2021 reached 1.1 million tons, up 6.7% compared to April 2021 but down 14.4% compared to May 2020.
However, this number is still relatively low in the context of tight markets, making it difficult to hoard.
Market participants say the auto industry’s unused volume is likely to be spot-on, so stock holders see an opportunity to buy more to hoard.
Average flat steel sales in May 2021 decreased by 10.5% compared to April 2021 to 488,920 tons, but increased by 36% compared to May 2020.
This represents a significant recovery from the same time last year when the market was hit by a drop in demand during the first wave of the pandemic.
Contrary to flat steel, the inventory of long steel in May 2021 decreased by 1.3% compared to the previous month and decreased by 2.1% over the same period last year to 809,053 tons. The reason is that the supply of some products is tight.
In terms of sales, sales of long steel in May 2021 increased slightly by 0.5% month on month to 292,381 tons and increased by 15.2% over the same period last year.
Despite the outbreak of the COVID-19 pandemic that caused the industry’s global growth outlook to collapse, China recorded an increase in crude steel production of up to 5.2%, touching 1.053 million tons.
In an effort to reduce steel production and address pollution-related issues, China has announced a number of policy changes that could redefine the market landscape.
As a result, the national government has introduced new guidelines in a long-term effort since 2017 to reduce steel production and limit problems with production growth.
Source: VITIC/Reuters
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