In November, the output of steel bars on the national scale was 22 million tons

According to the latest data from the National Bureau of statistics, in November 2019, the national industrial enterprises above Designated Size produced 22.408 million tons of steel bars, an increase of 341000 tons on a month on month basis, an increase of 1.5%; a year-on-year increase of 17.7%. From January to November, the cumulative steel production was 228.683 million tons, up 18.5% year on year. According to this calculation, the average daily production of steel bars in November was 746900 tons, an increase of 35100 tons / day, or 4.9%. In November, the output of thick and wide steel strip was 11.924 million tons, a decrease of 229000 tons on a month on month basis, a decrease of 1.9%; a year-on-year increase of 8.9%. The cumulative output from January to November was 136.963 million tons, up 10.1% year on year. In November, the output of wire rod (wire rod) was 13.521 million tons, an increase of 61000 tons on a month on month basis, an increase of 0.5%; a year-on-year increase of 3.1%. The cumulative output from January to November was 144.469 million tons, up 9.6% year on year.

It is found that since 2019, the monthly average production of steel bars in China has remained at a relatively high level. By June, the average daily production of steel bars had reached 756000 tons, the highest in at least three years. The main reason is that domestic demand remains stable, industrial enterprises have certain profit space, and steel enterprises increase productivity to occupy market share. In August and September, the downstream demand of the steel market was lower than expected. In addition, during the Mid Autumn Festival and the national day, the policy of environmental protection and production restriction was tightened, and the supply side was somewhat compressed. However, this year's environmental protection policy prohibits "one size fits all" policy. For steel enterprises that meet the environmental protection requirements, the production side has little impact, so the daily production of steel bars decreased slightly, which is relatively stable. By the end of October, the steel market gradually showed a "low season is not weak" market. Driven by positive news such as the improvement of downstream infrastructure demand, the decline of social inventory and the slow recovery of blast furnace operation rate, the main contract of screw steel gradually increased.

At the same time, the price of cost end iron ore and coke has declined, the profit space of steel enterprises has increased, and the enthusiasm of steel enterprises has been boosted. By November, the average daily production of steel bars in China had reached 747000 tons, close to the high of 756000 tons in June this year. However, at present, the demand side of the steel market has entered the traditional off-season due to the coming of the freezing period. The trading volume of the traders has declined significantly, the stock has begun to show a cumulative sign, and the production enthusiasm of the steel mills may be reduced. However, near the end of the year, considering the storage demand of the steel plant, it is expected that the daily average production of steel bars in December will be reduced, but not by a large margin.