CISA cautions on crude steel oversupply in Q2-Shanghai Metals Market

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CISA cautions on crude steel oversupply in Q2

Industry News 02:05:39PM Apr 30, 2018 Source:SMM

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.

 


For editorial queries, please contact Daisy Tseng at daisy@smm.cn 
For more information on how to access our research reports, please email service.en@smm.cn 

Key Words:  crude steel   oversupply   production  

CISA cautions on crude steel oversupply in Q2

Industry News 02:05:39PM Apr 30, 2018 Source:SMM

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.

 


For editorial queries, please contact Daisy Tseng at daisy@smm.cn 
For more information on how to access our research reports, please email service.en@smm.cn 

Key Words:  crude steel   oversupply   production