China's crude steel output rises 1.8 pct in May on yr -stats bureau
13 June 2016
China's crude steel output rose 1.8 percent to 70.5 million tonnes in May from a year ago, the second time to stand above 70 million tonnes this year, data from the National Bureau of Statistics showed on Monday.
The average daily crude steel output in the world's top producer eased 1.7 percent to 2.27 million tonnes in May from a month ago, according to Reuters' calculation based on the data.
Steel prices surged 79 percent in April from a decades-low hit late last year, encouraging mills to resume production and even bringing some zombie mills alive.
But prices declined one quarter since May as demand wanes, promoting mills to cool heir pace to pick up production as falling prices eroded their margins and some have started to make a loss.
Total output for the first five months fell 1.4 percent to 329.95 million tonnes from the same period last year, data showed. Steel production is expected to fall further in June amid slowing demand and China's efforts to cut overcapacity.
China has committed to curbing its steel capacity and winding down weak state enterprises by taking new measures and strengthening global coordination.
Source : reuters.com