Because of the slack demand from downstream industry and turmoil of the international financial market, the steel price and output both suffered from a drop in China during the traditional peak season.
According to the statistics from the China Iron and Steel Association (CISA), 76 Chinese mills produced 1.59 million tons crude steel of per day in late of August, down by 2.47% in comparison of that in late July.
Meanwhile, the steel prices have kept falling for consecutive two weeks. In July, the Chinese output of automobile shrank by 30% compared to that in this March, indicating the Chinese manufacturing industry not very optimistic.
Because the capital cost became higher, most steel traders do not stock too much to reduce the risk as much as possible, which made the steel market mild this year.