Statistics

China July steel output down 3.7% at 51.74m tons

(Agencies)
Updated: 2010-08-11 14:15

China's output of crude steel in July reached 51.74 million tons, up 2.2 percent from a year ago but down 3.7 percent from June, figures from the National Bureau of Statistics showed on Wednesday.

The figure amounts to 1.67 million tons a day, down from 1.79 million tons in the previous month but still significantly higher than last year's 1.56 million tons. It would also amount to around 609 million tons on an annualised basis, according to Reuters calculations.

Aggregate output from January to July stood at 375 million tons, up 18.2 percent compared to last year.

Domestic steel prices recovered 4 percent last week after a slump beginning in late April, prompting China's biggest producer Hebei Iron and Steel to raise its benchmark prices by 300 yuan ($44.27) a ton effective from Wednesday.

Related readings:  Domestic iron ore, steel trends hit markets  China H1 crude steel output grows 21%  China iron ore imports up 9% in July  China steelmakers likely to raise prices in Sept

However, average spot market prices remain around 8 percent lower than their April peak, and the China Iron and Steel Association (CISA) has warned that the entire industry is facing heavy losses in the second half of the year unless it tackles its longstanding overcapacity problems.

While a number of small- and medium-sized mills have slashed output in order to avoid losses, the bigger mills have scheduled overhauls as a way of cutting the glut.

CISA figures released on Wednesday said daily output from China's top 61 mills stood at 1.34 million tons, down 8.2 percent since the beginning of June. Overall daily output fell 7.8 percent over the same period.

Iron ore output reached 97.59 million tons over the month, down 3.9 percent since a record-breaking June but up 27.1 percent year on year.

Output from January to July stood at 583.435 million tons, up 28 percent compared with the same period of 2009.

At its Aug 3 news conference, CISA expressed hope that rising domestic production would ease China's dependence on foreign suppliers, but July imports rose 8.5 percent month-on-month to 51.2 million tons, customs data showed on Tuesday.