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China's steel output, prices up in May
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China's steel industry reported growth in both output and product prices in May, the latest figures from the Ministry of Industry and Information Technology showed.

About 35.46 million tonnes of raw steel was produced by 67 major steel producers in May, averaged at 1.14 million tonnes per day. The average daily output was 1.11 million tonnes in April and March and 1.15 million tonnes in February.

The comprehensive price index on the domestic market climbed from a low of 95.01 in mid April to 98.14 at the end of May, rising for six straight weeks, said the ministry.

Among major products, 12-mm deformed steel bar was valued at 3,747 yuan (551 U.S. dollars) per tonne and 6-mm plate at around 4,059 yuan per tonne.

Despite production and price rises, analysts warned that overcapacity remained the biggest problem and urged to put a ceiling on production based on demands.

(Xinhua News Agency July 18, 2009)

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