China's Steel Association Urges Production Cut Amid Falling Iron Ore Prices
The China Iron and Steel Association (CISA) has called on steel mills to reduce output to curb excess supply, as iron ore prices hit a ten‑month low and inventories at major ports hit two‑year highs. The warning comes amid a weak real‑estate sector and sluggish infrastructure demand, which analysts say are delaying steel demand recovery. Prices dipped 3.9% to US$96.25/ton on the Singapore Exchange before a brief rebound.
The China Iron and Steel Association (CISA) has called on steel mills to reduce output to curb excess supply, as iron ore prices hit a ten‑month low and inventories at major ports hit two‑year highs. The warning comes amid a weak real‑estate sector and sluggish infrastructure demand, which analysts say are delaying steel demand recovery. Prices dipped 3.9% to US$96.25/ton on the Singapore Exchange before a brief rebound.
The call for a production cut could tighten supply and support iron/steel prices in the near term, but the current inventory glut and weak demand backdrop may keep volatility high. Traders should monitor inventory releases and PMI data for signs of a sustained supply squeeze.