Metal China News & International Weekly Technicals

China's Crude Steel Output Surges 8.1% in May on Strong Domestic and Export Demand

China's crude steel output in May surged 8.1% from April and rose 2.7% year-on-year, driven by robust domestic demand and increased exports, according to the National Bureau of Statistics (NBS).

The world's largest steel producer manufactured 92.86 million metric tons of crude steel in May, up from 85.94 million tons in April, averaging around 3 million tons per day compared to 2.86 million tons in April and 2.91 million tons in May 2023. This output surpassed analysts' forecasts of 87-90 million tons.

As per analysts, the monthly increase is due to solid domestic and export demand.

Customs data showed that Steel exports rose 4.45% month-on-month to 9.63 million tons in May.

"Electric-arc-furnace-based steelmakers resumed production, and blast furnace output increased, driven by rising steel prices," noted an analyst.

Profitability among steel mills improved, with 53% operating at a profit in May, up from 45% in April, reported consultancy Mysteel.

From January to May, China produced 438.61 million tons of crude steel, a 1.4% year-on-year.

China's Central Bank Holds Rates Steady, Signals Continuity in Lending Policy

Mumbai, 17 Jun (Commoditiescontrol): In a strategic decision underscoring stability, the People's Bank of China (PBOC) announced on Monday that it would maintain its key policy rates unchanged. This decision suggests a likely hold on the benchmark lending rate later this month, a move aimed at ensuring economic steadiness.

The PBOC injected 182 billion yuan ($25.09 billion) into the financial system via its medium-term lending facility (MLF), maintaining the interest rate at 2.5%, unchanged from the previous operation.

This injection of liquidity without altering the borrowing cost indicates the central bank's intent to support financial institutions while preserving current monetary conditions. Analysts interpret this as a clear signal that the benchmark lending rate, critical for consumer and business loans, will likely remain steady in the forthcoming review.

Base Metals (LME) International Weekly Technicals Aluminium / Copper / Nickel / Lead / Zinc.