Chinese steel prices rose for a seventh straight session on lingering concerns about the supply outlook. The world’s leading producer of building materials and manufacturing is looking to reduce output this year.

Hot rolled rods and coils on the Shanghai exchange hit their highest levels since June 15, before easing, causing Dalian iron ore to recover after two days of declines.
Shanghai rebar closed up 0.8% to 5,146 CNY ($796.37)/ton, while hot rolled coil increased 0.5% to CNY 5,428/ton.
Iron ore on the Dalian Commodity Exchange rose 1.1% to 1,166 yuan a tonne.
Iron ore in Singapore increased 1% to 205.20 USD/ton. The spot price is still above 200 USD/ton.

China- The world’s top producer of building materials and manufacturing is looking to reduce output this year.

China has pledged to reduce crude steel production in 2021 and is considering implementing steel capacity cuts since 2016 as the country moves towards its emission reduction target.
In Anhui province, Eastern China, steel mills have been asked to develop a task analysis to reduce crude steel production and ensure that actual production in 2021 is not allowed to exceed the figure of 2020. .

Sinosteel Futures analysts said: “After estimating June production, it is expected that crude steel production from July to December this year will have to decrease by about 3.5 million tons compared to the same period last year, with an average daily loss of 19,000 tons.”
In the context of limited steel supply, leading to a decline in raw material demand, Chinese mills are trying to maximize output by using more high-grade iron ore.

Source: VITIC/Reuters

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