China’s Higher-Than-Official Steel Output Supports Iron Ore

Platts reported China’s steel output at higher than officially reported figures is supporting high seaborne iron ore prices, not overbuying by traders.

The market news is quoted as saying,

China’s crude steel output may have been under-reported by 10.6 million mt during the first half of 2011 as a tight market for construction steel incentivized previously closed out-dated capacity to resume production this year, said the latest MEPS China Steel Insight issue obtained by Platts Thursday. That differs from in 2010, when operators facing government curbs on overcapacity and energy produced illegally.

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