According to the China Iron and Steel Association (CISA), China key steel mills average daily crude Steel output post a 0.52% ten-day drop to 1.51 million tonnes in late-January, 
It was the second straight ten-day fall and the lowest ten-day level since early-October in 2012.
China’s daily crude steel output in January was estimated at 2.04 million tonnes, 1.8% lower than the actual output from last month.
In early February, key steel mills generally kept a low productivity level during the Lunar New Year holidays, when steel market was largely closed.
Hence, output from key steel mills may slip further in early February, analysts said.
By end-January, stocks in key steel mills stood at 12.02 million tonnes, slipping 3.3% on month and falling 18.6% from the year-ago level.
Given the strengthened steel prices and record-low steel stock before the Lunar New Year, a rebound in demand in late-February is expected, when most domestic enterprises increase spot purchasing after the holiday.
But it won’t last long due to macro economy slowdown pressure and sustained weak demand, predicted the CFLP Steel Logistics Professional Committee.
Additionally, the Central Bank of China lowered the proportion of down payment to boost real estate sales in early February. This move provided a chance for the new real estate projects which in the meantime may underpin steel prices to some extent.
Domestic prices of the four major steel products edged down slightly in late-January, with rebar price averaging 1,900.3 yuan/t, down 0.2% from mid-January, showed data from the National Bureau of Statistics (NBS).