China’s crude steel output hit a record high last month on strong domestic demand, following the end of the rainy season in mid-July.

The country’s crude steel output totalled 93.36mn t in July, up by 1.9pc from June and by 9.1pc from a year earlier, national bureau of statistics data show.

Crude steel output on a t/d basis declined by 1.3pc to 3.012mn t/d from 3.053mn t/d in June.

Total production over January-July rose by 2.8pc from a year earlier to 593.17mn t. The July output is equivalent to 1.099bn t/yr.

The higher steel output came on the back of robust downstream demand, with hot-rolled coil prices in Shanghai rising by 230 yuan/t ($33/t) over the course of July to Yn3,950/t ex-warehouse. Shanghai rebar prices increased by Yn90/t to Yn3,620/t ex-warehouse during the same period.

Strong downstream demand led to the higher output despite feedstock prices, especially for iron ore, remaining firm in July.

The Argus 62pc Fe cfr China index averaged $107.32/dmt last month, up by 4.7pc from June but down by 10.5pc on the year.

Demand support for steel in China and a lack of it outside of the country was underlined by an influx of spot import orders for finished and semi-finished steel, given the wide spread between Chinese and other countries’ prices. China’s steel imports rose to a 16-year high of 2.61mn t in July.

Pig iron output increased by 8.8pc on the year and by 2pc from June to 78.18mn t in July, while January-July output rose by 3.2pc on the year to 510.86mn t.