Steel prices are weakening, but Chinese steel mills are ramping up production anyway, adding to concerns of a serious price crash from analysts already worried about the sector.
The latest round of industry data tracking output over a 10-day period showed Chinese steel production increased 1.1% in early August, confounding expectations for a decline in output by volume.
The results prompted Nomura analysts to say in a note Tuesday said they were “very concerned,” having forecast a 5% decline in output for the output.
In fact, the results were so surprising, they raised the possibility that the data compilers had gotten their numbers wrong.
