China: 40% of CISA members have made cutback in Production.

August 03,

China Iron and Steel Association (CISA) official Wu Xichun has said that 40 percent of CISA members have already implemented production cutbacks.

Since rising raw materials prices are causing production costs to outstrip Steel sales prices, it is said that Chinese Steelmakers will cut production in August.

The estimated annual output of Crude Steel in China had been revised down to 610 million MT from the previously anticipated 650 million MT, based on the average daily output of Crude Steel in July, mainly due to the production cutbacks implemented by the Chinese Steel producers.

The Steel prices are unlikely to rebound rapidly until the Steel industry has completed its destocking process and has reduced its production to certain levels.