AKO General Discussion, page-734

Steelmakers slash output

Chinese steelmakers also slashed output last month in another blow for Australia’s iron ore miners, as woeful demand forced steep cuts on an industry contending with a collapse in margins from the property slump.

Steel production in July plunged about 9 per cent on both the month and the year to 82.94 million tonnes, the lowest figure this year. That leaves the total over the first seven months at 613.72 million tonnes, 2.2 per cent off last year’s pace.

The protracted downturn in the real estate market and the shrinking factory activity have pushed domestic prices sharply lower and unleashed a flood of Chinese metal onto world markets. The nation’s top steelmaker warned on Wednesday that the industry was facing a crisis more severe than the downturns of 2008 and 2015.