SHANGHAI, Apr 30 (SMM) – The steel market is likely to be oversupplied in the second quarter if crude steel production continues to grow at the rate in March, according to China Iron and Steel Association (CISA).
China's crude steel production stood at 212 million mt in the first quarter, up 5.4% year on year, CISA data showed on Friday April 27. The average daily production hit an all-time high for the same period. Steel stocks and iron ore port inventories also registered record highs.
An over-rapid growth in steel production would weigh on the market, and “threaten the normal operation of the industry”, said Liu Zhenjiang, secretary general of CISA.
He added that steelmakers would need to speed up destocking and address the overcapacity issue in the second quarter, and not “blindly” expand production due to short-term rises in steel prices.
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