According to data from China Iron and Steel Association (CISA) from June 1 to June 10 China’s crude steel average daily production slightly decreased from May 21 to May 31. However, the average daily production was still higher than that in May.
Increasing steel output, low demand for steel, and the growing cost of coke have made profits of steel mills in China low even loss. To respond to supply exceeding demand, some of China’s steel mills reduced their production.
Late June and early July are usually an off-peak season for the steel industry in China; therefore, decreasing steel output is forecastable. However, compared to the speed of lowering demands for steel, the reduction in production is still too slow.
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