Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China could witness more crude steel output cuts as the country aims to reduce emissions, China Iron and Steel Association said.


More notable reductions in crude steel output are underway with government-led environment checks as the country initiates a revamp to reduce pollution, limit production and retain more supply in the domestic market, the association said.


Daily crude steel output at major mills declined by 5.6pc in the first ten days of July from June, with most cuts at plants in Shanxi, Hubei, and Hebei provinces. Mills, including China Baowu Steel Group and HBIS Group, could lower their production rates.


The attempts by Beijing to curb steel output at records below last year’s level are yet to gain success. Production surged by 12pc in the H1 from the prior-year period as increasing steel prices raised margins. Output in July, however, decreased 5.6pc.


Steel exports could decline on higher tariffs imposed on overseas shipments, CISA said. The association further added steel demand could fall in H2. It states steel prices could stabilize at the current levels, provided supply and demand is relatively balanced. But a continued surge in prices of iron ore and other raw materials could squeeze mills’ margins.





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