Bloomberg reported that total crude steel output in China rose by 2% MoM in October 2012 amid signs of a demand pickup.

Based on monthly data collated by the National Bureau of Statistics, production reached 59.1 million tonnes in October 2012, up from 57.94 million tonnes in September 2012. Output was 6% higher than a year ago.

According to the median estimate of 31 economists in a survey compiled by Bloomberg, economic growth in China may reach 7.7% this quarter from 7.4% in the three months ended September 30th 2012.

Mr Hu Yanping chief analyst with Beijing-based researcher Custeel.com said that "Mills in northern China we’ve talked with over the past month has been operating at high capacity utilization ratio. There were also very few cases of suspension for maintenance."

According to Beijing Antaike Information Development Co, Chinese prices for hot rolled coil, a benchmark product, have climbed 21% from a three year low on September 7th 2012, after the government announced plans to spend on subways, railroads, roads, sewage treatment plants, port and warehouse projects. Prices rose 0.6% to CNY 3,950 a tonne.

On a daily basis, output fell to 1.91 million tonnes in October 2012 from the 1.93 million tonnes in September 2012, which was the highest level since June 2012. For the first ten months, production gained 2.1% to 602.2 million tonnes.