The driving force behind the increased production is the resumption of production by mini-mills after the Chinese New Year holiday, while blast furnace facilities have continued their operations steadily.
According to CISA's estimates, the country's daily crude steel production will average 2.69 million tons per day in mid-February, indicating a 1.2% increase from the period of February 1st to 10th.
The finished steel stocks of CISA member factories reached 19 million tons as of February 20th, marking a 17.7% increase compared to February 10th. The increase in stocks is attributed to weak steel demand and high production.
Meanwhile, final steel prices in China's physical market experienced a slight increase in mid-February. For instance, the price of 20mm rebar rebar stood at 4,033 yuan/ton (560 $/ton).
Market experts anticipate that final steel production will increase with improvements in end-user demand, and the rise in demand will positively influence steel prices.
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