The Chinese news agency, Xinhua, reports that Chinese steel prices dropped slightly for the fifth week in a row and some steel plants are planning either to cut or to suspend production once again. Analysts expect the stimulating effect on steel prices by this new round of output cuts will probably not be until May or June, as steel production capacity resumes production in China.
Mr Li Yizhong, Minister of Industry and Information Technology said: "Currently about 90% of China's steel production capacity has resumed production."
According to statistics of MySteel.com, daily output of crude steel in China was estimated at 1.42 million tonnes in February, against 1.22 million tonnes in last December and 1.33 million tonnes in January.
One analyst said: "As China's steel production is of low concentration rate, the output cut of various steel plants may lack organization."
The previous round of price rebound was realised after steel plants had cut production for five months.
Source: MySteel
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