In mid-February the national crude steel production in January than in January rose nearly 6%

Key steel prices rose from 9.47 million tonnes at the end of January to 9.46 million tonnes

Profitability is the main reason for the recovery in steel production

Reuters Beijing, March 1 (Reuters) - Crude steel production and steel inventories rebounded significantly in mid-February, according to analysts at the China Iron and Steel Industry Association. Analysts said steel production rose in line with expectations, and profitability was the main reason.

China Steel Association Xun reported that in mid-February the national crude steel production reached 181.4 million tons, much higher than January 1, 1703,000 tons; February mid-year crude steel production reached 180.04 million tons, compared with January's 170.3 10,000 tons have a more substantial recovery, the rate of close to 6%.

It is noteworthy that Xun reported that key corporate steel inventories increased to 9.46 million tons, significantly higher than the end of January when the 7.57 million tons.

"Profit situation improved, steel mills on the scale and profit pursuit is leading to steel production continues to rise the main reason." Zhonglian Steel analyst Hu Yanping said.

She said that in mid-February crude steel production rose significantly more or better than expected, but it is estimated that February crude steel Nissan should be less than the level of 1.8 million tons.

China Steel Association recently reported that in mid-February member companies crude steel production was 15.994 million tons, the national estimate of 18.14 million tons.

China Iron and Steel Industry Association Dengqi Lin said earlier, from the domestic and international market demand, expected in 2011 China's crude steel apparent consumption of 632 million tons, an increase of 5%, is expected to increase over the previous year about 30 million tons.