It is reported that Wuhan Iron & Steel Group, China third biggest steelmaker and Anshan Iron & Steel Group may carry out plant maintenance this month after prices dropped.

Ms Hu Yanping a Beijing based analyst said Wuhan Steel will shut a hot rolling plant for 10 days and Anshan Steel part of the country fourth largest producer will close a cold rolling line for about half a month. He said that “Falling steel production may help ease a domestic glut. But the cuts are still too limited to stall dropping prices.”

UBS AG said this month that steel production in China, the world biggest maker of the metal may drop 8% to 10% in the second half from the first six months.

Mr Fu Jihui board secretary of Angang Steel Co Anshan Hong Kong listed unit said “Maintenance is a usual practice for steelmakers. I am unaware of the details.”

Mr Wan Yi board secretary of Wuhan Iron & Steel Co Wuhan Steel Group listed unit said he’s unaware of maintenance plans.

Ms Hu said China daily steel production extended declines in the June 21 to June 31 periods. Average daily output was 1.71 million tonnes, lower than the 1.77 million tons for June 11 to June 20 and 1.78 million tonnes in the first ten days of the month.

She said that Hebei Iron & Steel Co a unit of Hebei Iron & Steel Group China largest steelmaker will also shut a hot-rolling production line for about two weeks for maintenance. Mr Wang Weigang a spokesman with Hebei Steel couldn’t immediately be reached for comment.

Production cuts at steelmakers have led to lower iron ore purchases. Iron ore imports by China, the world largest buyer fell in June for a third month, customs data showed. Imports dropped 9% to 47.2 million tons in June from 51.9 million tons in May. The shipments were 15% lower than the 55.3 million tons a year earlier.

(Sourced from UC361.com)