On September 3, the China Iron and Steel Association (CISA) held an industry self-regulation meeting for the provinces of Guangdong and Guangxi, analyzing the supply and demand situation in the steel market in the provinces in question. The steel enterprises attending the meeting stated that demand for steel has slackened significantly since the beginning of this year, causing the financial losses incurred by steelmakers to increase, especially in Guangdong and Guangxi.
The steelmakers aid demand for steel may rebound in the September-October period, which would exert a positive impact on steel prices. However, CISA also urged market players to reduce production capacity utilization rates, or the rebounding trend may not last and the general market conditions will remain weak.
China’s daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 2.0034 million mt in early August, up 1.52 percent, while declining by just 0.5 percent to 1.9934 million mt in the middle of the month.
