Friday, April 08,
Crude steel production in China has been accelerating since the beginning of the year, putting the market at risk if the demand fails to meet the expected level.*
While the rally has been positive for upstream commodities including iron ore and thermal coal, overproduction is likely to cap upside, said head of Commodity Research Company.
The property market slowdown has so far not slowed commodity markets betting on improved demand and more policy loosening in the second half of 2011, he added.
If the demand spike proves elusive or less strong than expected, the bulk commodities market might come under huge pressure. This warning comes a day after bellwether Baoshan Iron & Steel Co. (600019.SH) said it would cut its May prices 4%-5% on month for its key sheet products, its first cut since August and getting in line with other steelmakers that had already reduced April prices when Baoshan held theirs steady.
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