OREANDA-NEWS.  April 19, 2012. The CISA said China daily steel output slipped by 1.49 percent to 1.89 million tons during March 20-31. As of late March, steel prices in Shanghai have risen for four weeks in a row, with those of mainstream products climbing by as much as 300 yuan a ton.

Observers pointed out several reasons for the recent decline in production rates: first, there was little business activity between late March and early April after continuous rises in the production level. Buyers have adopted wait and see procurement strategies.

Second, distributor stocks continued to rise on a year-on-year basis as of April 6, despite declines in weekly terms. The high level of stocks remained a challenge the sector has to confront with. Finally, the prices of long products have been growing faster than those of flat-rolled steel since early March. Demand from the auto and home appliance sectors were still weak.

The average price of imported iron ore rose by 1.36 percent from the previous month to USD 138.22 a ton in March. The consistent cost pressure may cause steelmakers to trim down their utilization rates.