According to China Iron
& Steel Association (CISA), output of crude steel will drop by 2% in 2015
and this is lower than CISA’s estimation of 1.1% in March.
It means the crude steel production will reach 807 million tons this year from
823 million tons in 2014, the first contraction since 1990, as steel producers
in China shut capacity.
According to CISA, the greatest factor of this reduction is profitability; the
market is speculating that producers and traders are holding back supplies in
an effort to push up prices.
Li Xinchuang, CISA’s deputy secretary-general, said in an interview this week,
“Low prices will be with us for a long time. So will tepid demand and zero
growth, or even contraction, in output.”
Source: yieh.com