CISA mills’ daily steel output up 6.48 percent in early June

The China Iron and Steel Association (CISA) has announced that in early June (June 1-10) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 2.2311 million mt, up 6.48 percent compared to late May (May 21-31) this year.In late May this year, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China had totaled 2.0954 million mt, down 6.68 percent compared to mid-May (May 11-20) this year.As of June 10, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 15.8043 million mt, rising by 1.18 percent compared to May 31.As of June 9, rebar futures at the Shanghai Future Exchange were standing at RMB 3,711/mt ($518/mt), increasing by RMB 248/mt ($34.6/mt) or 7.2 percent since May 31. In early June, inventories of rebar and wire rod indicated decreases of 6.3 percent and 6.5 percent, exerting a positive impact on steel prices. At the same time, the People’s Bank of China (PBOC) conducted reverse repo operations to the amount of RMB 2 billion ($0.28 billion) through interest rate bidding on June 13, with the repo rate decreasing by 10 basis points from 2.0 percent to 1.9 percent. Moreover, the loan prime rate (LPR) is also expected to see a decreasing trend, which will bolster market sentiment and provide support for steel prices in the near future.