In its monthly prediction report issued on September 19, the China Iron and Steel Association (CISA) says it expects that domestic steel prices will probably not trend up significantly in the coming period given the context of oversupply - despite the production cuts resulting from the central government's policy targeting energy savings and reduced emissions.
The report accepted that the steel output reductions resulting from electricity cuts had provided some relief for the lack of equilibrium between supply and demand in the domestic market, thereby pushing up steel prices in recent weeks. However, it added there is still a lack of sufficient factors which would provide support for a recovery of demand.