In 2018, demand in the Chinese steel industry will likely remain at a basically stable level, while uncertainty is foreseen to come from the supply side as steelmakers will increase their outputs after the winter season production curbs which will come to an end on March 15, as stated by Wang Yingsheng, deputy secretary general of the China Iron and Steel Association (CISA).
Mr. Wang said that the average daily crude steel output in China during the winter season has been 2.2 million mt, while the highest level reached during 2017 was 2.45 million mt. After the period of the winter production cuts, the average daily crude steel output in China will likely increase to 2.5 million mt, which will increase demand for iron ore, while at the same time pushing down finished steel prices, he stated.