Recently, steel prices in Yunnan region continue to decline, and steel mills are facing losses. From steel production reduction for steel mills in April-May, it intensifies significantly (at present, production reduction in May reaches up to 35%).

         According to SteelHome survey, some BF based steel mills in Yunnan enjoy profit of -200 yuan/t, and steel mills with electric furnaces are nearly in the loss, which has seriously affected the normal ecological operation of the iron and steel industry in Yunnan Province overall, and the production and management of steel mills are facing great challenges.

         Recently, steel mills have reached an agreement to continue to reduce production on the basis of original plan to balance market supply and demand in the province and support market prices to return to a reasonable range. For more details, SteelHome will continue to follow up.