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China's steel output, prices up in May

(Xinhua)
Updated: 2009-07-18 11:37

China's steel industry reported growth in both output and product prices in May, the latest figures from the Ministry of Industry and Information Technology showed.

Related readings:  Steel industry on a consolidation mode  Baosteel to hike key August steel prices by 9-13%  China's steel demand in 2009 may surpass 2008  Steel sector sees no early respite from dismal days

About 35.46 million tons of raw steel was produced by 67 major steel producers in May, averaged at 1.14 million tons per day. The average daily output was 1.11 million tons in April and March and 1.15 million tons in February.

The comprehensive price index on the domestic market climbed from a low of 95.01 in mid April to 98.14 at the end of May, rising for six straight weeks, said the ministry.

Among major products, 12-mm deformed steel bar was valued at 3,747 yuan ($551) per ton and 6-mm plate at around 4,059 yuan per ton.

Despite production and price rises, analysts warned that overcapacity remained the biggest problem and urged to put a ceiling on production based on demands.