Nation’s crude steel output stood at 92.27 mn t in May’20, setting the highest record over the last 5 years, as per the data maintained with SteelMint since cy15.
Meanwhile, on a monthly basis, the crude steel production increased by 9% in May’20 when compared with 85.03 mn t in the previous month. Also the same moved up by 4% on a yearly basis against 89.09 mn t in May ’19.
Increase in nation’s crude steel output is due to following reasons:
Robust domestic demand-Post lock-down due to COVID-19 domestic demand in China improved on active trades and increased buying from local buyers.Also push provided by the Beijing infrastructure development led to firm demand from the infrastructure and construction sectors in the country.
Limited production cuts-After being hit by the COVID-19 pandemic, the nation’s steel sector has revived gradually with the easing of lock-down norms and fewer production curbs announced until May’20.
Rising domestic prices-The domestic prices have witnessed a gradual increase since mid-March with the easing of stringent lock-down restrictions and improved market sentiments.The domestic HRC prices have increased by RMB 150/t to RMB 3650-3660/t in mid-May in contrast with 3500-3510/t in mid-March.
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