According the report released by MIIT on Tuesday, China's steel output is anticipated to reach 690-700 million t in this year. Meanwhile, steelmaking activities in H2 may be affected by the tight monetary policies as well as the implementations of power curbs and outdated capacity eliminations. Besides, it is reported that the industrial growth may slow down in H2, which will definitely diminish the steel demand.
In terms of the steel imports and exports in H2, China's steel exports may stand at 45 million t, dropping slightly year over year. Meanwhile, the steel imports will remain unchanged year-over-year and come to 16 million t.
As for the steelmaking ingredients, the price for iron ore may fluctuate slightly in the second half of this year and the steelmakers will continue keeping at a low profitability along with the high-remained steel productions. As a consequence, steel price rally in H2 is almost impossible.