China produced 317.31 million tons of crude steel in the January to July period of this year, up 2.9 percent year on year, according to statistics from the Ministry of Industry of Information Technology.

The daily output amounted to 1.50 million tons, higher than the 1.37 million tons for the year 2008.

The output of China’s major crude steel makers decreased 1.8 percent
year on year while that of local small- and medium-sized producers
increased 23.2 percent, according to the China Iron and Steel
Association (CISA).

In terms of different steel products, deformed steel bar, steel wire,
railway structural steel and welded steel tube enjoyed larger outputs,
supported by the growing demand. However, the output of medium plate,
medium wide steel strip and cold-rolled thin wide steel strip decreased
due to shrinking domestic demand and falling exports.

Meanwhile, inventories of China’s major steel products remained at a high level.

In July, inventories of five major steel products in 26 cities ¨C wire,
hot-rolled steel, deformed steel bar, cold-rolled plate and medium
plate ¨C increased 5.4 percent month on month to 9.44 million tons.

Wire recorded the biggest inventory growth of 14.5 percent month on
month, followed by hot-rolled steel and deformed steel bar, which went
up 7.1 percent and 5.4 percent respectively.

Source: Chinamining

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