daytrading aug 20 pre-market, page-29

Interesting story on the front page of the AFR today -

Iron ore alert as China cuts steel output

Chinese steel mills have begun cutting production as record stockpiles continue to build, signalling further weakness for iron ore prices and a slowing growth in the world’s second biggest economy.

A sluggish construction market and a lack of additional stimulus measures from Beijing has China on track to record its first annual decline in steel production in 31?years, analysts said.

The managing partner of research firm J Capital in Beijing, Tim Murray, said that while official data indicated steel production was flat, he estimated it fell by as much as 10 per cent over the first 15 days of August.

“This is the first indication of ­significant cuts,” he said. “There are some seasonal factors at play, but the volume coming off is unusual.”

The remainder of the story -

http://afr.com/p/world/iron_ore_alert_as_china_cuts_steel_Bkoi6NOPC5KYN7JNXNhzfO