Reuters reported that global steel production rose again in June led by record crude output in China and US steelmakers also made more despite slow growth in the world largest economy.
Some analysts said but production may ease later this year as steelmakers, facing softer demand in the last few months and could reduce output to defend profitability.
According to figures from the World Steel Association global crude steel production rose 8% to 127.746 million tonnes YoY in June 2011. This represents a record daily production level of almost 4.3 million tonnes compared with less than 4.2 million tonnes per day in May.
Crude steel output from China, the world top producer and consumer of the metal rose to 59.932 million tonnes in June up by 11.9%YoY. This was also an increase to a new record high in daily terms to slightly less than 2 million tonnes from slightly more than 1.9 million per day in May.
Mr Colin Hamilton an analyst at Macquarie said "The figures are slightly above expectations. He said that this is another record high for both the Chinese as well as the global market. There are no dramatic changes, but the big surprise was North America which has grown MoM despite a degree of economic concern."
He added that "The Chinese production was high which shows that their economy is still strong despite economic tightening."
There are however concerns about declining steel prices which may push steelmakers to cut supply to tackle softening demand.
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