The China Iron and Steel Association (CISA) has stated that in early January (Jan. 1-10) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China totaled 1,674,900 mt, up 3.8 percent compared to late December (Dec.21-31) last year. In early January, the average aggregate daily crude steel production of all steelmakers in China was estimated at 1,944,200 mt, indicating an increase of 2.3 percent compared with late December of 2012.

Market players pointed out that, following previous declines, Chinese mills’ capacity utilization has witnessed a rebound due to increases in raw material stocks and in booking volumes before the Spring Festival holiday. However, as the Chinese steel market has not yet seen an obvious recovery, the increased production capacities of Chinese mills may put pressure on recent increases in steel prices in the coming period.