From Members, MetalBulletin China AM: Steel futures up amid news...

From Members, MetalBulletin

China AM: Steel futures up amid news of mill shutdowns
China’s steel futures rose during morning trading on Tuesday April 25

Index of spot market Iron Ore prices delivered to China, normalized to Qingdao and 62% Fe US $ per tonne Daily

Futures closing prices – morning session
Shanghai Futures Exchange
October rebar: 2,936 yuan ($429), up 24 yuan ($3.50)

Dalian Commodity Exchange
September iron ore: 496 yuan ($72), up 2 yuan ($0.30)

Billet
Tangshan billet price: 2,740 yuan ($400) per tonne, up 20 yuan ($2.90) per tonne from Monday amid active trading.

Key market news
A total of 29 steel producers have been ordered to shut down while 40 others were given a warning to rectify their production processes to meet environmental and safety standards following inspections on the Chinese steel industry, the Ministry of Industry & Information Technology said late on Monday. If the 40 fail to make the necessary rectifications within a year, they too will be shut down, the ministry said.

Shanxi, China’s largest metallurgical coal producing region, also plans to increase "advanced capacity" in the province by 70 million tonnes this year to further improve the market’s supply-demand balance, according to the same report. "Advanced capacity" refers to bigger Chinese coal producers that meet a set of criteria set by the government.

Chinese steel companies’ earnings surged in the first quarter of this year, according to the China Iron & Steel Assn (Cisa). Its member mills generated a revenue of 839.33 billion yuan ($122.60 billion) during the period, which enabled them to post a net profit of 23.28 billion yuan ($3.40 billion), Cisa said late on Monday.

Global crude steel output totalled 410.5 million tonnes in the first quarter of this year, up 5.7% compared with the same period last year, the World Steel Assn said on Monday. China, which accounts for around half of the world’s steel production, saw its output rise 4.6% in the quarter to 201.1 million tonnes, Worldsteel said. Worldsteel members jointly account for 85% of global steel production.

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