China steel output stays firm.China's daily steel production in September matched the previous month's record while iron ore output jumped to an all-time high, underscoring Beijing's challenge in reining in industrial overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. , reports Reuters. Aggressive expansion in the Chinese steel industry does not mean rising profitability as massive supplies have weighed on prices, but a buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. economy should keep production strong. "The September steel output data showed that Chinese steel mills are not scaling back their production despite a 300 to 400-yuan per tonne decline in steel prices in September from August," said Hong Kong-based analyst Helen Lau at OSK OSK On Screen Keyboard OSK Osaka Shosen Kaisha (Japanese shipping line) OSK One Shot Kill (gaming clan) OSK Oslo Seilflyklubb (Norwegian: Oslo Gliding Club) Securities. Oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies had weighed on the domestic physical steel market since early August and pushed steel mills to cut their offering prices until Shagang, one of the leading steelmakers, raised its key reinforcing bar prices. "Going forward, China's steel sector may face some domestic policy risks, but we believe production may continue to be strong in view of restocking demand and economic recovery in the developed world down the road," Lau said. On a monthly basis, September's crude steel output dipped 3.1 per cent from the August record to 50.71 million tonnes, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. figures released by the National Bureau of Statistics on Thursday. All-time high On a daily basis, however, September's output matched the all-time high of 1.69 million tonnes reached in August. This is equivalent to an annualised 617 million tonnes, 23 per cent higher than 2008, according to Reuters calculations, and in line with industry figures. Production remained above 1.69 million tonnes a day at the start of October, China Iron & Steel Association data showed. September production rose by 29 per cent compared with a year ago, the fastest growth since 2005, but the rapid pace was against a weak base last September, when a recession began to take hold in the West and before Beijing's $586 billion stimulus plan started to revive slowed economic growth early this year. Copyright 2008 www.tradearabia.com Copyright 2009 Al Hilal Publishing & Marketing Group Provided by Syndigate.info an Albawaba.com company |
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