China's steel prices pick up, but big rises unlikely: industry group

Updated 2017-08-23 09:30:23 Xinhua

China's steel prices have begun to rise, but an industry group tried to calm the market Tuesday, saying the increase will be limited as new production capacity is set to ease supply.

The steel price index climbed to this year's peak of 106.49 at the end of July, lifted by higher iron ore costs, improved demand as well as lower supply due to government policies to cut steel overcapacity and enhance environmental protection, China Iron and Steel Association (CISA) said on its website.

The country's crude steel output rose 5.1 percent year on year to 492 million tonnes in the first seven months this year, while apparent consumption of crude steel increased 10.9 percent to 450 million tonnes, according to CISA data.

Although production restrictions amid tighter enforcement of environmental rules during the winter heating season will cap supply in the coming months, expanding competitive capacity will help contain large price rises, the CISA said.

China has been striving to close small mills that churn out low-quality steel made from scrap metal, this year, leading to decreased supply.

The crackdown on the small low-end furnaces, accounting for 4 percent of total steel output, came as Beijing aims to cut excess capacity, tackle pollution and improve safety measures at these mills.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58November 20 2017 15:43:56

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16November 20 2017 15:43:56

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18November 20 2017 15:43:56

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords