The China Securities Journal has cited Mr Jiang Feitao from the Chinese Academy of Social Sciences as saying that China's steelmaking capacity utilization rate may fall to 71.64% in 2009 the lowest since 2001.
Mr Jiang said the utilisation rate posted at 75.83% last year, versus around 80% during 2001 to 2007 and 92.35% in 2002.
However, compared with the extensive global output cut China's crude steel production level remains high and stood at 127 million tonnes in the Q1 up by 1.19%YoY from a year ago. While global production in the period off massively by 22.92%; of which, EU, North America and Japan eyed over 42% output falls.
The high output was mainly contributed by the reviving construction steel production like rebar, wire rod and medium and small sized sections; while the recovery of flat products steel under oversupply pressure.
In the Q1 rebar output grew 20.96%YoY from a year ago wire rod up 8.21% and medium and small-gauged sections advanced by 21.37%. Flat products output in the quarter posted at 50.69 million tonnes down by 7.68% from the previous year; narrow strip, 10.09 million tonnes off 2.33%. And the centralized capacity utilization of the product this year is certain to exert great pressure on its recovery.
Source: Steel Guru
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