China steel output down

Beijing
China’s crude steel output fell 1.7 percent in May from a year earlier, government data showed on Thursday, as a sluggish economy and property market hit demand.
Steel production reached 69.95 million tonnes last month, bringing output in January-May to 340.17 million tonnes, down 1.6 percent from the same period last year, according to data from the National Statistical Bureau.
Average daily crude steel output in May came in at 2.256 million tonnes, down from 2.297 million tonnes in April, according to calculations based on the data. Steel mills ramped up production the month before in anticipation of a seasonal pickup in demand, but a rebound in iron ore prices, soft steel demand and a deepening glut have prompted mills to reduce output. “Steel mills have started to curb production since late May as a result of declining profit. And this trend will last in June as steel demand is shrinking, but iron ore remains in an upward trend,” said Xia Junyan an analyst with Everbright Futures in Shanghai.