12 Jun 2009 10:18

China's daily crude steel output hits 1.5 mln tons in May

Shanghai. June 12. INTERFAX-CHINA - China's daily crude steel output reached an average of 1.5 million tons in May, the highest level so far in 2009, according to a report released by the National Bureau of Statistics on June 12.

China's production of crude steel, steel products and pig iron stood at 45.43 million tons, 46.46 million tons and 57.29 million tons in May, representing a year-on-year increase of 6 percent, 0.6 percent and 7.4 percent respectively.

"Domestic steel product prices continued rising through May and were at a relatively high level, which led to Chinese steel mills ramping up production as much as possible," Hu Yanping, an analyst from Umetal, told Interfax.

China's Ministry of Commerce predicted in a report on June 11 that steel product prices will continue its uptrend in the near future, as demand from the infrastructure construction sector has increased. At the same time, prices of raw materials including coke are also rising.

"June's daily crude steel output level may stay at the current high level, as steel product prices are expected to remain buoyant in the near future," Hu added.