China is taking a controlling policy on crude steel production this year; however, the country’s crude steel output continued increasing in early August. Market participants said that the control policy hadn’t been implemented entirely. The increased output was driven up by higher steel prices in July.

According to statistics, China’s crude steel production was estimated to be 29.87 million tons in early August, rising by 1.12% compared to late July and hiking by 13% year on year.

Due to the increased crude steel production, the price of iron ore also rebounded greatly last Friday, reaching US$105.65/ton.

Market participants said the thorough control policy should restrain the daily average output of crude steel at around 2.54 million tons for the period from August to December, a drop of 15.5% compared to the daily average output in the second quarter.