The latest data from the China Iron and Steel Association (CISA) shows that daily crude steel production at large and medium-sized mills averaged a record 2.14 million tons during June 11 - June 20. This is 1% more than was produced during the previous ten days and is 3% more than was produced during the same period last year. Chinese steel production set a record last month and has continued to set new records this month. Production grew year-on-year last month by 4% and similar growth has been maintained recently.
We remain quite bullish for China’s steel production prospects and for iron ore import prospects. We also remain bullish for the Chinese economy at large, and only can foresee a potential second wave of coronavirus as an impediment to growth this year. For now, there is no strong second wave in China and economic growth prospects are encouraging. The Chinese government has all but abandoned concerns over debt and instead is largely focused this year on stimulating the domestic economy.