Steel prices in China have been rising recently despite sluggish demand, mostly on expectations that China would unveil fresh economic stimulus measures. This is also encouraging higher production, sources said.
If stimulus measures benefiting the steel-intensive industries turn out to be smaller than expected, this could weigh on Chinese steel markets, sources say.
China's daily pig iron and crude steel output rose in mid-June compared with the May average.
China's daily pig iron for June 11-20 climbed 0.6% to 2.45 million mt, while crude steel output for the same period rose 1.1% to 2.953 million mt, the latest data from China Iron & Steel Association showed.
During the first 20 days of June, the daily pig iron and crude steel output increased by 1.2% and 2.4% from the daily average in May to 2.443 million mt and 2.937 million mt, respectively.
CISA does not reveal year-on-year changes in steel production, but the daily crude steel output in June could still be around 2% below the same period of 2022, S&P Global data showed.
Finished steel inventories at mills and spot markets monitored by the CISA reached 25.78 million mt June 20, down by 22.8% from a year ago, and also 4.8% below the same period of 2021.
