China Steel Association: Daily Production of Crude Steel Continues to Record High in Early April

The rebound in China's steel prices has caused steel mills to expand their production enthusiasm. China Steel Association estimates that China's Nissan crude steel production will continue to record highs in early April, which exceeds industry expectations, which may increase the supply surplus in the steel market.

Due to the rapid release of production capacity in January-February, high stocks of steel products, and adjustments to the country’s monetary policy, the steel products have significantly declined since mid-February, and then the steel prices have lowered the ex-factory prices in April and May, and steel prices have been increasing since late March. Again there has been a continuous rebound.

According to data from China Steel Association, China's crude steel production in the first half of April was estimated to be 1979.2 million tons, of which 76 member companies had crude steel production of 16.533 million tons, and daily production reached 1,653,400 tons, which was a 2.4% increase compared to the previous period.

The China Iron and Steel Association said on Tuesday that domestic steel production has grown rapidly and that steel stocks have continued to drop but are still at a high level. It is expected that the domestic market will continue to experience oversupply in the future, but factors such as the arrival of the consumer season are expected to cause a slight rebound in steel prices in the later period.