Industry News

China's steel output cuts could continue in H2, annual target may be readjusted

Views : 113
Update time : 2021-08-03 18:24:28
A recent call by China's Politburo for a correction in "campaign-style carbon reductions" is expected to mainly target China's thermal coal industry, while the nationwide steel output cuts will likely still be implemented in the second half of 2021, as curbing iron ore prices was the major reason behind it, market sources said.

China's top planning body in a July 30 meeting said it was important to set the path to peak carbon emissions first before breaking old patterns.

The announcement led to a fall in the Chinese steel futures market. On Aug. 2, the most actively traded October rebar and hot-rolled coil contracts on the Shanghai Futures Exchange dropped 5.6% and 5.7% on the day to Yuan 5,414/mt ($838/mt) and Yuan 5,780/mt, respectively.

However, market sources said China's steel output cuts were not "campaign-style carbon reductions."

Related News
Read More >>
What Tariffs, Steel Prices Mean for E&S Construction Insurance in California What Tariffs, Steel Prices Mean for E&S Construction Insurance in California
Apr .25.2025
What Tariffs, Steel Prices Mean for E&S Construction Insurance in California
Nickel Price Update: Q1 2025 in Review Nickel Price Update: Q1 2025 in Review
Apr .25.2025
Nickel Price Update: Q1 2025 in Review
Higher steel prices benefiting Region steel mills Higher steel prices benefiting Region steel mills
Apr .25.2025
Higher steel prices benefiting Region steel mills
Vale's net profit drops 17% on lower iron ore prices Vale's net profit drops 17% on lower iron ore prices
Apr .25.2025
Vale's net profit drops 17% on lower iron ore prices