China Faces Summer Steel Output Cut on Prices: Chart of the Day
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China’s steelmakers, the biggest in the world, may cut output in the next two months as prices have dropped at a time when the main raw material became costlier.
The CHART OF THE DAY shows the benchmark price of hot-rolled steel coil has dropped 1.2 percent in China since May 23, while iron ore has increased 5.8 percent. The profit squeeze means daily steel output may fall as low as 1.8 million metric tons by the end of August, about 12 percent less than the record high in April, according to estimates by Custeel.com, a Beijing-based industry researcher.