Chinese steel and iron ore futures dropped for a second day on Wednesday, reflecting concerns over weak demand as construction activity slows during the summer.

After months of strong steel production as mills responded to a rally in prices earlier this year, output in China, the world’s top producer, could slow along with consumption, the China Iron and Steel Association warned.

“With waning demand and falling steel prices as summer enters, and against the backdrop of cutting overcapacity, there is a small possibility that steel production would continue expanding, and iron ore demand will unlikely rise,” the industry group said in a report on its website.

China’s crude steel output rose 1.8 per cent to 70.5 million tonnes in May from a year ago, the second time production topped 70 million tonnes this year, government data showed on Monday.

 

Source : indianexpress.com

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