China's daily crude steel output slipped 0.5% between December 21st to 31st 2012

Reuters reported that China's daily crude steel output slipped 0.5% between December 21st to 31st 2012 from the preceding 10 days the third consecutive fall during the month as steel mills curbed output amid slowing demand.

Industry website Custeel.com citing data from the China Iron & Steel Association said that the average daily crude steel output in the world's largest steel producer fell to 1.901 million tonne between December 21st to 31st 2012 the lowest level since end September.

Demand for some steel products traditionally declines during winter months as construction activity particularly in northern regions is dampened by cold weather hitting consumption of long products including rebar and wire rod.

Some analysts said that “The output number was severely underestimated however as large steel mills producing flat steel products for manufacturing, did not slash output.

Mr Cheng Xubao, an analyst with Custeel said that "There was little chance that steel mills would give up the opportunity to raise output when steel prices rose.”

Spot prices of hot rolled coil used in manufacturing have risen about 23% since early September. The price of rebar mainly used in construction climbed only 6% since early September 2012 according to Xiben New Line Corporation Ltd a spot steel trading platform in Shanghai.