SHANGHAI (Scrap Register): China’s daily Crude Steel output surged to a fresh record high during the month of May this year as mills pumped out the construction material at full capacity to take advantage of strong profit margins.
China, the world’s biggest Steel maker, has produced 81.13 million tons of Crude Steel last month, up 5.8 percent from the previous month and 8.9 percent from the same month last year, according to the latest Chinese official data.
Daily average output climbed 2.4 percent to 2.62 million tonnes in May from April. Year-to-date Steel output rose 5.4 percent from a year earlier to 369.86 million tonnes.
Recent environmental inspections in some 10 regions, including top Steel making hubs Hebei and Jiangsu, have forced some mills to cut production. But analysts do not expect the curbs to last long, unless new environmental policies add to pressure on supplies.