China Raw Steel Output Declines by 4.2% in June

Chinese crude steel output decreased by 4.2% to 53.77 million tonnes in June from May, which showed first decrease for the first time in 4 months, announced by Chinese authorities on Thursday. The output was high at more than 50 million tonnes per month for 6 months in a row through June. However, major steel makers in China launched the output reduction due to the decreasing demand and market price. The production in January-June increased by 21.1% to 323.17 million tonnes from same period of 2009, which renewed the record in first half. The output in second half would decrease due to the slowdown in automobile and construction demand.

The daily production was 1.79 million tonnes in June, down by 20,000 tonnes from May. The iron ore import decreased by 9.1% to 47.17 million tonnes in June, which decreased for 3 months in a row. The crude steel output would decrease in July.

On the other hand, the steel production increased by 0.3% to 71.44 million tonnes in June from May, which increased for 4 months in a row. The production in January-June increased by 26.1% to 398.68 million tonnes from same period of 2009. The production increased in June despite the decline in crude steel output.

Chinese government plans to reduce the Chinese steel maker’ annual pig iron output capacity by 30 million tonnes in 2010. Some local governments launched to stop the old facilities. The steel production is expected to decrease.