China's Crude Steel Output Fell in July as Mills Reduced Their Operations

China's crude steel output fell in July as mills reduced their operations owing to the summer slowdown and higher production costs. China's daily crude steel output for July was at 1.913 million tonnes, down 4.3% from June, according to the national statistics bureau. Crude steel output in the first seven months of 2011 totalled 410.4 million tonnes, up 10.3% in the corresponding period last year. Numerous steel mills have taken advantage of the seasonal lull, engaging in maintenance exercises and overhauls. "Summer maintenance by some steel mills and lower production from flat product mills led to the drop in July figures, " a Shanghai trader said. Flat steel producers have reduced their output to protect their profit margins against higher production costs, with many hot rolled coil and plate mills running at 50-70% of their capacity. Only construction steel manufacturers are producing at full capacity, benefiting from demand for more public housing, a trader close to the mills told MB. "Production is unlikely to drop further in August, as higher export transactions are expected, " a stockist in Tianjin said. But the final production volume will depend on market performance, he added. Source: metalbulletin.com