Unending sob story of Chinese steel industry continued in April with the crude steel production shade lower at 65.65 million tonnes from 66.3 million tonnes in March. It was only 1% lower however 6.8% higher YoY. Steel makers kept production robust to maintain market share.

Chinese steel mills are unlikely to take the bait of production pruning owing to inherent compulsions.
1. Mills need to maintain their market share lest they lose it to errant small players
2. Big production cuts will affect their bank financing, their annual production target and revenue.