Record Steel Output in March
The growing production as Chinese mills bid to profit from prices that soared in 2016 and into this year are undermining the government’s years-long push to cut capacity to make the steel industry more efficient and tackle smog.
Beijing’s crackdown has mainly targeted low-grade products like rebar, used mostly for construction.
Rising inventory levels and recent falls in the prices, though, suggest output has been growing faster than China’s actual demand.
The most-active steel rebar futures prices were down 1.15 percent at 2,918 yuan ($423.90) per tonne at 0243 GMT, on track for a 7.8 percent drop in April, their worst monthly performance since May last year.