Daily crude steel production by the 97 largest steelmakers of the China Iron and Steel Association (CISA) rose sharply in the first decade of June, increasing by about 56,000 tonnes or 2.8 percent from May 21 to May 31 and reached 2.06 million tons per day.
According to the data of the association, published on Monday, June 24, as of June 10, stocks of finished steel in warehouses of CISA members increased significantly compared to the previous ten-day period, increasing by 14.7 percent from May 31 to 13.02 million tons ... Inventories have risen due to surging steel production during a period of seasonally low demand, according to Mysteel Global.
Experts note that since the beginning of this year, China's macroeconomy has been generally stable. GDP growth in the first quarter was 6.4 percent, significantly better than market expectations.
Steel and iron ore data scientist Darren Toh of Singapore-based data analysis firm Tivlon Technologies says that steel demand in China's manufacturing sectors is “very strong” today.
Lin Zhiyuan, deputy director of the Center for Macroeconomic Research, Xiamen University, said that with the adjustment of macroeconomic policy and stabilization of GDP growth in the first quarter since the end of last year, the market has certain expectations of a moderate recovery in the second half of the year.
The US-China trade war has not yet affected domestic demand for steel. At the same time, neighboring countries fear that rising inventories and falling steel prices in export markets indicate the beginning of a new round of overproduction in China. Indian metallurgists are actively lobbying for the introduction of additional duties on steel imports, and in Europe they are suspending the operation of blast furnaces in an attempt to stabilize the ratio of supply and demand.
