In April, China's monthly steel output was quoted at a little over 59 million tons. Although monthly output is slightly down, China's daily steel output reached nearly 2 million tons last month, which is 2.6% above the daily figure for March.
Earlier this month, CISA, or the China Iron & Steel Association, posted slightly lower figures, but the trend is still prevalent: the steel industry in China has experienced steady growth over the year.
This demand has been coming from more construction on infrastructure and low-cost housing in China. Demand has also increased from outside of China: Japan has been seeking steel imports from neighboring countries, like China, due to the recent earthquakes and tsunami.
Because Japan's steel-plate and pipe production were located within the vicinity of the earthquake, five of their steel plants have been shut down. Xu Xiangchun from Mysteel.com predicts that China will see a significant rise in the demand for steel, especially construction steel products, in coming months.
Summer Peak Steel Season
Summer is just around the corner, which means peak time is near for the Chinese steel industry. Despite Chinese mills producing a significant amount of steel, stockpiles have been dropping quickly due to the high demand. Their steel mills are producing over half of the planet's output, operating at over 90% capacity.
Judy Zhu from Standard Chartered Bank states that she has not seen a decline in production in the last four months. One major concern is that the power shortages occurring throughout various provinces in China might last during peak season.
Zhu claims that it is very likely that power shortages will get worse and last throughout the summer. In addition, she doubts that the current levels of steel output can be maintained.
Key Statistics - Global Steel Market Production
(source: International Steel Statistics Bureau’s Monthly World Steel Production Review May 2011)
- Global steel production rose in March 2011 to over 129 million tons, the highest monthly amount ever recorded.
- In March, 61% of China's steel exports traveled to other Asian countries, while only 10% was shipped to the EU.
