The China Iron and Steel Association (CISA), with the support of the government, urged local steelmakers to cut production to protect against price declines. At the meeting held on Monday, it was emphasized that falling domestic steel prices poses a serious challenge and that the producers' cash flow needs to be stabilized.
CISA was present at the meeting with a delegation of 16 steelmakers and their representatives. Foreign sources said on Tuesday that some steelmakers in Northwest and North China have started maintenance work at their blast furnaces after losses.
Foreign sources reported that as of Tuesday, more than 30 steelmakers announced their maintenance plans. “Producers in these regions faced great financial pressure due to high steel stocks,” a market expert said.
China is the world's largest steel producer, and fluctuations in steel prices have been a frequent topic in recent years due to large capacity increases in the industry. However, price decreases have been experienced recently due to excessive supply and demand imbalance in the market. Therefore, CISA's call for domestic steelmakers to cut production is aimed at stabilizing prices and overcoming difficulties in the industry.
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