Economy

China steel output rose 2% in early November: CISA

(Agencies)
Updated: 2010-11-18 16:26

SHANGHAI - China's massive steel sector produced 2 percent more crude steel in the first 10 days of November than in late October, data from the China Iron & Steel Association (CISA) showed on Thursday.

The country's average daily crude steel output stood at 1.601 million tons in the first 10 days of November, up from 1.564 million tons per day in the last 11 days of October.

The association's member producers, about 77 medium- and large-sized steel mills, produced 1.333 million tons each day during the November 10-day period, little-changed from late October.

CISA earlier expected the country's steel production to stay at low levels in November and December.

Two leading Chinese steel mills annouced cuts to steel prices for December bookings in response to falling prices after Baosteel kept prices unchanged for the month from November.

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The two major mills, both accounting for a chunk of the domestic market share for flat steel products, expressed concerns about weak steel demand during the winter season.

Wuhan Steel, China's third-largest steel mill, decided to cut hot-rolled coil prices by 150 yuan ($22.59) to 4,110 yuan per ton from November.

Cold-rolled coil prices will also be slashed by 240 yuan to 5,060 yuan per ton.

Its domestic rival Angang, the country's fourth-largest, followed by dropping hot-rolled coil prices by 200 yuan to 3,620 yuan per ton and cold-rolled coil prices by 150 yuan to 4,490 yuan per ton, from the previous month.

All prices exclude the 17-percent value-added tax.

China's Baosteel, the leading pricing leader setting the tone for the sector, annouced that it would keep its December prices unchanged, which put a lid on spot prices.

CISA expects that domestic steel prices will stay volatile due to slow seasonal demand and as the government implements more tightening policies to curb inflation.