Although China’s crude steel output in August recovered after dropping for two consecutive months, the steel inventory of China’s main trading centers still maintained at a low level by the middle of August.

The low steel output and stocks represented China’s steel makers and distributors were still uncertain for the market. Because of extremely hot weather and power shortage along the Yangtze River, China’s steel demand from the construction and manufacturing industries was still low.

According to data from China Iron and Steel Association (CISA), from August 1 to 10, China’s crude steel daily average output increased by 3.8% compared with the daily average output in July, but still lower by 10% from June.

In the future months, the situation of low steel demand, low output, and low stocks would continue, said market participants.