According to data released by the China Iron and Steel Association (Cisa) on Friday, August 13, the production rate of crude steel, final steel and base metals in the first 10 days of August fell by about 9% compared to the same month last year. The decline in steel production rates in all groups in the Chinese market indicates that the issue of regulatory pricing in China is likely to continue until the end of the year. In the following, we will refer to the reports of this association. Please stay with Artan Press until the end.
*** cisa order to reduce steel production rates
The statistics related to the decline in steel production rates recently confirmed by cisa in the Chinese iron and steel market are as follows. The decrease in steel production rates compared to the last 11 days is quite noticeable. China appears to be pursuing a stronger regulatory pricing policy in August. In this regard, crude steel has reduced production by 2.04 million tons per day, equivalent to 2.97%. In the final steel sector, a production rate of 1.92 million tons per day, equivalent to 9.46%, occurred. In the basic metals sector, we have seen a production rate of 1.83 million tons per day, equivalent to 2.66%.
*** Significant reduction in inventories due to lower Chinese steel production rates
An important issue that has arisen in the shadow of the decline in steel production rates is the assessment of the inventory of markets and warehouses of manufacturing plants. The current inventories of the markets from their supply reports show that the inventories in the market have increased or decreased in an oscillating and irregular manner. For example, the stock of hot-rolled coils was 1.92 million tons, which is an increase of 10,000 tons in the reports of the Chinese Dalian Stock Exchange. This product has witnessed a half percent growth in supply.
Similarly, cold rolled coils have seen a growth of 10,000 tons in supply, which is about one percent growth. The stock of these two goods in the metals market has increased. But many commodities have reduced supply in the hope of raising prices.
*** Increased steel supply in August due to mandatory pricing
Slate markets have seen a drop in supply since the beginning of August. This area of ۱٫۰۴ with a supply of one million tons, a reduction of 20,000 tons has led to a reduction of supply by about one percent due to the reduction of production rate. Has experienced a decline in supply due to a decline in steel production rates. In total, the steel market for the five main products of the Chinese stock market has witnessed a decrease of 11.91 million tons in production, which has decreased by one percent in the last 11 days.