Chinas crude steel production could fall this year for
the first time in 31 years, a senior industry analyst said in a
report that was picked up by the China Iron and Steel
Second-half crude steel output
could fall 10 percent to 321.5 million tonnes from 357.2
million tonnes in the first half, steel
industry consultant Xue Heping said in the report,
putting full-year output at some 678.7 million tonnes, down 0.7
percent from last year.
Cisa couldnt be reached
for comment Tuesday.
Chinese steel production cuts
have led mills to cancel contracted iron ore shipments, which
could further pressure spot iron ore prices.
Mills reportedly canceled
shipments after a slump in Chinas steel market led them
to bring forward planned maintenance outages.
Iron ore prices have already
fallen to a two-and-a-half-year low and could come under
further pressure if contracted material makes its way onto the
"A steel mill said (Monday) that
it will defer one contracted cargo from Rio Tinto this month,"
one trader told AMM sister publication Metal
Chinas steel industry registered a profit of 2.39
billion yuan ($377 million) in the first half, plunging 95.8
percent from the same period last year, according to Cisa.