chinese crude steel output reaches 2 mt /day

http://www.steelguru.com/chinese_news/Chinese_crude_steel_output_in_June_reaches_2_million_tonne_per_day/214455.html

Chinese crude steel output in June reaches 2 million tonne per day

Thursday, 14 Jul 2011

It is reported that Chinese daily crude steel output in June rose to a record average of 1.998 million tonnes in June.

Data from the National Bureau of Statistics showed June crude steel output rose 11.9% from a year earlier to 59.93 million tonnes. In the first half of the year the country produced 350.54 million tonnes up 9.6%.

Mr Henry Liu head of commodities research for Mirae Asset Securities said "Steel mills are maintaining high utilization rates of 90% to 95% though market demand isn't good and as scale of production is very important during times like these."

He said that "Mills don't dare cut output now, as banks will take away their credit if they do."

Mr Liu said falling steel prices are unlikely to recover as mills raise output levels and traders retreat from the market due to declining trading margins.

Despite the high output levels of crude steel a barometer of overall industrial health, Chinese mills have been cutting prices almost steadily through the first half.

(Sourced from Dow Jones)
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