According to a statement made by CISA on February 23, daily crude steel production of the companies that are members of the association increased in February. Production averaged 2.09 million tons, up 1.5% per day compared to the end of January.
According to the data, CISA predicted that China's national daily crude steel production was 1.03% higher on February 11-20 compared to the previous 10 days, coming in at an average of 2.56 million tons/day.
The main reason for the continued increase was that more electric arc furnace (EAF) steelmakers resumed operations, and the production of blast furnace (BF) plants in China also remained high in anticipation of further recovery in the United States.
China's finished steel prices recovered in mid-February thanks to increased demand, and the national price of HRB400E 20mm diameter rebar, the most important element for the local steel market, reached 4,297 Yuan/ton ($621/ton), including 13% VAT. As of February 20, it earned 37 Yuan/t compared to 10 days ago.
In addition, the daily trade volume of rebar, wire rod and bar-in-coil among 237 Chinese traders was recorded as 153,272 tons/day in the period of February 11-20, increasing 66,086 tons/day compared to the average.
Meanwhile, speculative demand has also increased due to the positive mood in the Chinese steel market, giving local steelmakers some confidence to increase production.
According to the statement, finished steel stocks of CISA member producers continued to increase in mid-February, reaching 19.53 million tons as of February 20, increasing by 1.5 million tons or 8.3% compared to 10 days ago.
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