It is reported that Chinese steel industry now is under great pressure of high costs caused by continuous rise in iron ore prices coupled with weak demand as a result of Chinese government macro control policies to promote fundamental shifts in the economics system and the mode of economic growth.

Experts believe that steel mills should take advantage of such a situation to carry out annual and maintenance related work to avoid overproduction which could lead to further price decline. At the same time, experts also suggest that steel mills take advantage of steel futures to hedge against further declines.

An expert from Metallurgical Economic Research & Development Center under the Ministry of Metallurgical Industry pointed out that the misbalance between supply and demand was the main reason for the present difficult situation.

The expert also added that daily crude steel production reached 1.847 million tonnes in April representing annualized production of 674 million tonnes and however the apparent consumption for crude steel was very low at only 300 million tonnes.

(Sourced from MySteel.net)
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