Chinese steel output cut as prices fall and inventories rise

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Publish time: 4th June, 2013      Source: ChinaCCM
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Research company www.cnchemicals.com said that Hebei Iron & Steel Group, China's biggest steelmaker, joined domestic rivals in halting plants, responding to price declines amid high inventories.

Custeel said that Hebei Steel's Chengde unit will halt a 2,500 cubic meter furnace for maintenance for 21 days starting from June 10, which it's estimated would reduce its iron output by 120,000 metric tonnes, on its website today. Nationwide, 10 blast furnaces have been shut or suspended for checks, which would cut iron output by 1.11 million tonnes, equating to 1 million tonnes of crude steel.

Mr Wang Xiaoqi vice chairman of China Iron & Steel Association said that steel reinforcement bar futures in Shanghai fell to the lowest level in more than eight months yesterday as production rises faster than consumption. Steel output in China gained 8.4% in the first four months of this year to 258.2 million tonnes from a year ago, according to the National Bureau of Statistics. About 54% of that extra steel has become inventory sitting in warehouses.