SMM Interpretation of China Crazy Steel Rise Following CISA Meeting

SHANGHAI, Aug. 11 (SMM) – China Iron and Steel Associate (CISA) held a meeting on Aug. 9 to talk about soaring steel prices both in futures and spot market, and called for measures to prevent irrational price rise. 

The recent surge both in steel futures and spot prices comes on the back of over-speculation on production cuts from China’s environmental protection inspections in major steel producing regions, especially capacity cuts in the winter months. 

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SMM holds its view that it is too early to talk about the impact from the cuts during the winter months, and it is obviously that market speculations on the topic are overdone. 

China’s iron&steel industry will develop towards a more balanced direction against the background of de-capacity and phasing-out of inefficient ones, and a rational stance is advised to be taken.  

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