Hunan Province-based Chinese steelmaker Hunan Valin Iron & Steel Co. (Hunan Valin Steel) has stated that the steel industry remains at bottom levels, while the contrast between supply and demand is still prominent.
Several government departments in China, including the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC) and the State Administration for Market Regulation have stressed the need to curb excessive competition in the steel industry, bolstering market sentiments.
In the third quarter of this year, China’s steel enterprises will continue to implement production cuts, which will provide support for steel prices.
Valin Steel stated that, with the implementation of production controls and with the self-discipline of steel enterprises to reduce production together, steel supply may continue to contract, which will effectively resolve the long-term structural contradictions in the steel industry.