Chinese steel mills cut production

Market prices for steel continue to fall, and recently 23 Chinese steel mills were closed for maintenance.

Market participants said that cutting production is the only way to address the current situation in the steel industry, as well as reduce selling pressure and inventories, and this decision could restore buyer confidence.

As factories in China cut capacity, global iron ore prices have fallen nearly 20% over the past month. Meanwhile, the European Central Bank and the Federal Reserve will raise interest rates. Generally speaking, the price of iron ore will be permanently low.

So Chinese authorities have advised steel mills to follow the rules: no production without orders, no sales below cost, and no deliveries without payment.