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Chinese Steel Production Powers On

Sharecafe - Chinese crude steel production was maintained at record levels in June, helping explain the continued strength in iron ore imports and prices.

Global prices spent June at or above $US100 a tonne (for the typical 62% Fe fines product delivered to northern China) and have risen further in the first half of July, climbing 12% to more than $US112 a tonne.

Prices might fall in the next day or so because of reduced demand caused by the worst rains in 20 years in southern China is limiting steel output and consumption (on building projects).

Data yesterday from the National Bureau of Statistics showed China’s daily crude steel output rose 2.4% in June from May, setting a second straight monthly record as mills maintained production on robust construction activity and a pick-up in manufacturing.

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