Chinese Steel Production Seen Poised to Drop as Prices Slump
Steel production in China is poised to decline after prices slumped for a fourth week, according to Commodore Research & Consultancy.
Hot rolled coil fell 4 percent from the previous week, the most since September, Jeffrey Landsberg, managing director at the New York-based researcher, said in an e-mailed report today. Inventories of flat and construction steel products in China gained 10 percent in the last week to approximately 21.6 million metric tons, he said.
“We believe that Chinese steel mills are poised to temporarily reduce production in order to stimulate steel prices,” Landsberg said in the report. “It seems clear that production is outpacing demand.”
The Asian nation is the world’s biggest importer of iron ore, a steelmaking raw material.
To contact the reporter on this story: Rob Sheridan in London at email@example.com
To contact the editor responsible for this story: Alaric Nightingale at firstname.lastname@example.org