Zhang Xiaogang, general manager of Liaoning-based Chinese steel producer Anshan Steel (Angang), has stated that in July many Chinese mills may incur losses, and thus more and more domestic steel producers will choose to cut or halt production. On the finished products' side, structural steel will be the worst affected, followed by hot rolled coils, Mr. Zhang predicted.
Meanwhile, Angang sales manager Xie Chengbo said that, with the increased iron ore price for the third quarter, steel prices may rebound due to the pressure from iron ore costs. However, any rebound is not expected to last more than two months due to the oversupply in the domestic steel market, he added.