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4 Chinese steel makers considering output cuts - Xinhua
It is reported that 4 large Chinese steel firms have been in talks to reduce their crude steel output by a total 20% or up to 20 million tonnes in a bid to cut ore imports and support prices.
Xinhua in a report posted on its website, quoting a source from the steel producing town of Handan, said that senior officials from Shougang Steel in Beijing, Angang Steel and two newly formed groups Shandong Iron and Steel and Hebei Iron and Steel decided that cuts would be based on current capacity. It did not give a time frame for the cuts to take effect.
All four steel mills are state owned firms in northern China. Angang already sources most of its iron ore domestically, while the Shandong and Hebei groups are in the process of forming in mergers directed by the central government.
Cuts would help the firms control the rhythm of raw material purchases, the rate of consumption of stockpiles and encourage raw material prices to return to a rational level.

The report said it would also avoid disordered competition between different regions and markets and relieve pressure on world iron ore markets
 

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