Daily crude steel output grows in October

China's daily crude steel output in early October reached 1.92 million metric tons, 4 percent up compared with late September, the first increase after continuous declines in August and September, according to the China Iron and Steel Association.

The daily crude steel output of major steel companies in the country increased 74,600 tons to 1.58 million tons, or 4.94 percent up, compared with the late September.

The average steel price was 3,880 yuan ($616) a ton on October 16, 9.25 percent up compared with this year's lowest level of 3,552 yuan a ton, on September 7, according to the Mysteel.com, a major industrial website.

However, China's economy is still slowing and the downstream demand for steel remains weak, said Shen Yibing, industry analyst of Mysteel.

The performances of some State-owned steel producers perhave improved a little bit because of the prices rebound in October.

By October 12, 49 out of 395 blast furnaces are under maintenance in the country, ten less than the previous week, which indicated a trend of increasing production.

Shen said it will be harmful for the steel industry if the mills increased their output too fast, because of the ongoing weak demand and strong iron ore prices.