As per the recent data released by NBS (National Bureau of Statistics), China’s crude steel production for Jan-Feb’19 registered an increase of 8% to 149.58 MnT in CY’19 as compared to 138.8 MnT in similar time period of CY’18.
Chinese steelmakers ramped up production amid easier environmental restrictions pushed up production volumes.
On monthly premises, crude steel production in Feb’19 was recorded at 74.58 MnT against 75 MnT in Jan’19.
Meanwhile towards the end of Feb’19 domestic HRC prices in China was around RMB 3, 800-3, 830/MT (Eastern China) which was RMB 3, 760-3, 770/MT (Eastern China) in end of Jan’19. Prices mentioned above are inclusive of VAT.
Thus improved demand, strong futures and gains in domestic prices resulted to surge in nation’s crude steel output in Jan-Feb’19. However steel margins continued to remain slow.
Outlook in Mar’19- As per market reports nation’s crude steel output is likley to remain low in Mar’19 as compared to previous months owing to stringent production cuts in northern China.
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