MEPS, a provider of steel consumption, production, forecasts and prices, had revealed the under-reporting of China’s steel production in 2010, in its April edition of the ‘China Steel Insight’. More analysis revealed that the under-reporting continued into 2011. The steel-makers’ association, Worldsteel, has acknowledged the under-reporting of the 2010 figures.
MEPS’ detailed investigation estimates the crude steel production at 45 Mt, which will be equivalent to around 40 Mt of finished steel.
The company has estimated the crude steel output in China at 363 Mt for the first six months of 2011. MEPS had published the estimate in the ‘China Steel Insight’- August edition. The NBS statistics report crude steel output of 353 Mt .
MEPS predicts that the total under-reporting of 28 Mt of crude steel output for the full year 2011. It reports that there is a change in the reasons for not disclosing the steel output, and many of them are related to small rebar producers. These rebars are utilized in the construction industry. This reveals the reason why certain companies fail to state their output.
Worldsteel has revised the apparent usage of steel in China by 4% upwards for the year 2010. MEPS has estimated an apparent consumption of 677 Mt of finished steel for 2011. This figure is 10% higher than the estimate for 2010. The 2011 estimate is more than Worldsteel’s expectations, but MEPS reckons that more crude steel output under-reporting will continue this year.
Source: http://www.meps.co.uk/