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Final December Chinese steel production rose 1.2% to 1.683 million tonnes per day (mtpd) – in line with the normal seasonal uptick – from November’s 11-month low of 1.663 mtpd, and was some 1.8% higher than the China Iron & Steel Association (CISA)’s estimated December production of 1.654 mtpd.  While the increase was the first since June, December output was still some 15.8% below peak levels posted during that month.  December production also annualized at just 614.1 mt, significantly less than full-year 2011 production of 683.3 mt and even full-year 2010 production of 626.7 mt.

Despite the overall increase, we would point out that CISA’s “production flash” reports for December showed that production declined in each successive 10-day period, so by late December, output of 1.626 mtpd was at the lowest level since October 2010.

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