Related News

Home » Business » Energy

Steel output climbs to record

CHINA'S crude steel output rose to a record last month, as the government's 4-trillion-yuan (US$586 billion) stimulus package ignited demand which then boosted prices.

The steel output of 49.43 million tons last month was a 6-percent increase in annualized terms and a 9.9-percent gain from May.

For the first half this year, production rose 1.2 percent to 266.58 million tons, according to figures released yesterday by the National Bureau of Statistics.

The China Iron and Steel Association had earlier set an output target of 460 million tons for this year.

Umetal Research Institute analyst Hu Yanping said the "astonishing" output means the government massive stimulus package has been effective, with more railway lines being built and cars sold.

"Accelerating investment growth and recovering industrial output triggered steel demand," Hu said.

China on Thursday reported a 7.9-percent gross domestic product growth in the second quarter, sharply higher than the 6.1 percent in the first quarter.

Rising demand has led to a 17-percent rise in key steel prices since April 1, as major steel mills, including Baoshan Iron and Steel Co, have increased product prices.

Domestic steel mills posted an aggregate profit in May, the first time in eight months.

However, Hu said there is an increased risk of a mid-term correction in steel prices, given the higher steel inventory compared with a year earlier, the upcoming traditional low-demand season and the still weak export market.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend