China's rebar output declines 8.1% y-o-y during Jan-Nov

Total production of rebar across China posted an 8.1% on-year decline over January-November to 218.2 million tonnes, according to new statistics released by the country's National Bureau of Statistics (NBS).

And for November alone, China's total rebar output rose 8.5% on year to 19.8 million tonnes. However, the tonnage had dropped for the second month by another 5.5% on month, Mysteel Global calculated based on the NBS data.

Market sources cited the production curbs imposed on some Chinese steel mills and the maintenance stoppages to reduce their profit losses for the on-month dip.

The average loss on rebar sales among 91 Chinese blast-furnace steel producers under Mysteel's survey narrowed to Yuan 37/tonne ($5.3/t) in November from Yuan 82/t in October, as reported.

As of November 30, China's national price of HRB400E 20mm dia rebar under Mysteel's assessment recovered by Yuan 63/t on month to Yuan 3,946/t and including the 13% VAT.

On the other hand, steel demand from end-users weakened during November with the falling temperatures in northern China and the COVID-related restrictions to contain the spread of the virus, sources said.

For example, the spot trading of construction steel comprising rebar, wire rod and bar-in-coil among 237 Chinese trading houses under Mysteel's tracking just averaged 156,157 tonnes/day in November, down 0.5% on month.

In the past 11 months, rebar production accounted for 17.8% of China's total finished steel output, or contributing to 18.1% of the total for November alone, Mysteel Global calculated based on the NBS data.

Written by Rong Zhang, zhangronga@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.