Reuters reported that slowing economy in China, which grew at its weakest pace in nearly three years in the first quarter, is raising concern that a seasonal uptick in steel demand in the second quarter, when construction recovers after winter, might not be as strong as many had thought.
That could curb China's steel production, which hit a record daily pace above 2 million tonnes in early April.
Chicago-based consultancy analyst Ms Michelle Applebaum said she expects China's steel production pace to slow in the second half of this month after mills incurred losses in the first quarter.
She said “Overall, we are expecting an improved supply/demand balance in China in the second quarter, resulting in a reduction in exports as Chinese steelmakers thus far have been unwilling to reduce export prices.”
Source – Reuters