China’s crude steel output is expected to trend downward in the remainder of 2021, as output cuts are political missions for steelmakers, some mill sources said.

          However, even if the cuts are widened further in the fourth quarter, steel prices are unlikely to increase significantly, partly as falling iron ore prices have eased production costs, and partly because the impact from a slowing property market could be felt by the steel market in Q4, a few sources said.

          The slowdown in property construction as a result of tightened credit to this sector may lead property steel demand to a year-on-year decline in the second half, and also dent the manufacturing of engineering machineries.

          By mid-September, the recovery of infrastructure construction has remained milder than a year earlier, some steel traders said. China will accelerate the issuance of local government special bonds in Q4, but the support generated by the bonds to infrastructure may not take effect until early 2022.

---Steel Business Briefing