Reportedly, Fitch Rating predicted that Chinese steelmakers are not likely to reduce production amid the lasting weak demand, and the steel prices is going to keep soft in the second half of 2012 and through to the first quarter of 2013.
Fitch analyzed the puzzle that China major steelmakers don't want to lose market portion though the prices are not profitable, while small mills are also ramping up production amid the raw materials' prices falling.
The crude steel output of China steelmakers reached a record high of 61.693 million tons in July 2012, growing 2.5% from June and increasing by 4% year on year.