Iron ore chart at Shanghai Exchange (Source: Shfe)

Specifically, China’s crude iron and steel output during this period averaged 2,097 million tons/day and 2,526 million tons/day, respectively, down 9.8% and 9.2% compared to the previous level. recorded in December 2021.

Similarly, the output of pig iron and crude steel in the first 20 days of January 2022 was also 14.5% and 14.8% lower, respectively, compared to the same period last year.

As of January 20, finished steel inventories at steel mills and the spot market monitored by CISA were 3.6% lower than in the same period last year, at 21.89 million tons.

Some industry sources are skeptical about the output drop, but they also forecast the market will see limited supply since the end of January as steel production cuts expand in China’s Hebei province. China.

However, some mills said they have ramped up production since late December 2021 or early January 2022 after completing mandatory steel output cuts requirements for 2021 – a major move. aimed at limiting carbon emissions.