China Business News reported that the steel producers that were asked to suspend or cut productions by power restrictions are resuming operation this period now that the year energy saving and emission reduction targets has reportedly been fulfilled.

China steel output keeps recovering in December based on CISA latest data release recently. In the first ten days of December, the large and medium size steel enterprises made a total of 14.05 million tonnes of crude steel with nationwide production estimated at 16.669 million tonnes and the daily figures going to 1.405 million tonnes and 1.667 million tonnes respectively. The daily outputs are 2.7% and 1.5% higher than in the previous comparable period.

Mr Hu Yanping Custeel analyst was cited by the newspaper as saying that the steel industry control of production is relaxed in December which is the main reason behind the rising outputs.

In November, the nation daily steel production was 1.6724 million tonnes up by 49,700 tonnes from October also revealing steel output check has been loosening. And another reason is the long steel products price increases since November which stimulate resumption of steel production too.

But analyst Mr Hu still believed crude steel output in December will remain at a relatively low level forecasting its daily output hardly to exceed 1.70 million tonnes. The recovering steel output is not to weigh on the market supply pressure while the social inventory has stayed low. Major steel products inventory reported at 12.81 million tonnes off 31% from the peak level of March.

(Sourced from China Business News)