Platts reported that EUROFER expressed doubt that Chinese counterpart CISA will be able to implement a set of production and price discipline rules which its members imposed on themselves recently.

Mr Moffat director general of EUROFER said that "I can't see it happening mainly because they have a huge number of steel plants which operate independently from Beijing's directives. It is positive because it shows that there is a clear recognition that production has gone beyond China's needs and that they have seen the potential for disruption elsewhere, referring to exports of excess Chinese steel production disrupting the European steel market."

He added that in Europe and North America, producers are doing everything that they should do, referring to their efforts to adjust production to demand.

According to calculations made by bank Macquarie, January 2009 steel production in Western Europe was down by 41.3% YoY, while in the US it was 52.7% YoY lower.

(Sourced from www.platts.com)