CRU: Large output cuts in China overshadow mixed global picture

Global crude steel production fell by 4% month over month (m/m) in July, led by a major drop in Chinese output, which fell 9% m/m. The decline in global production was larger year over year (y/y), decreasing by 5%. With the seasonal summer slowdown coming on top of underlying weak demand, Chinese mills are competing aggressively on price, keeping margins negative and now causing significant output cuts. In the rest of the world, small increases in crude steel production were seen, driven by a strong 3% m/m rise in output from Asia outside China.