Chinese Cisa steel mills cut output in mid-March

China Iron and Steel Association (Cisa) member mills cut crude steel output by 0.51pc from 1-10 March to 2.048mn t/d over 11-20 March because of weaker steel demand and rising inventories.

Output fell by 9.12pc from a year earlier during 11-20 March.

Daily pig iron output fell by 0.42pc from 1-10 March to 1.836mn t/d for 11-20 March and was down by 6.56pc from a year earlier.

Daily finished steel output rose by 1.95pc from 1-10 March to 1.965mn t/d for 11-20 March but was down by 8.05pc from a year earlier.

Cisa reported its members' steel inventories at 19.533mn t over 11-20 March, rising by 0.05pc from 1-10 March and up by 3.04pc on the previous year.

Cisa data include information from more than 100 of the country's largest steel mills.

China's spring season demand was weaker than market participants' expectation with inventories continuing to rise after the lunar new year in late February. Market participants estimate that Chinese trading firms and mills' steel inventories rose by around 2mn t from early March to mid-March because of weaker consumption from the construction industry.

Steel prices showed a downwards trend in early March and mid-March. Shanghai rebar ex-warehouse price assessed by Argus fell by 200 yuan/t ($28/t) or 5.4pc from 1 March to Yn3,530/t on 20 March.