In Early August, China Fails To Restrict Crude Steel Production

China is limiting crude steel production this year; yet, the country's crude steel output continued to rise in early August. According to market players, the control policy had not been fully applied. Higher steel prices in July fueled the increased output.

According to statistics, China's crude steel production in early August was expected to be 29.87 million tons, up 1.12% from late July and up 13% year on year.

Iron ore prices rose sharply on Friday as a result of increasing crude steel production, reaching US$105.65/ton.

According to market participants, the strict control policy should keep the daily average output of crude steel at roughly 2.54 million tons from August to December. According to market participants, the strict control strategy could limit daily crude steel output to roughly 2.54 million tons from August to December, a 15.5% decrease from the second quarter's daily average output.