According to information from the recent World Steel Association event held in China, after Chinese steel production reached peak levels in May, it indicated a significant drop in June due to shrinking demand. Chinese iron ore import figures also provide evidence for this situation. In June, China imported 47.2 million tons of iron ore, while total iron imports in May came to 51.9 million mt. This indicates a decrease of nine percent, reflecting the production cuts implemented in China.
In addition, according to its new policy, the Chinese government has announced that steel production is to be reduced in China. Against the background of the production cuts and the slight increase in demand, local Chinese steel market prices have started to show increases, while it is heard that some Chinese mills have stopped giving offers. Local hot rolled coil prices in China have increased by more than five percent in just the past three days. Many mills are holding back their offers for now. At the same time, iron ore prices in China have increased by $5-8/mt.