BEIJING/SINGAPORE: China is facing a high profile test of its commitment to curbing industrial pollution after steel output surged in the first half of the year to well beyond its target of capping.
Analysts say it won't be easy for China to balance emission goals and economic targets, but it will try to ease supply shortfalls and price rises with export tariffs and higher imports.
Dalian ferrous raw materials dive on demand concerns
Chinese coking coal and coke futures fell to a one-month low on Thursday and iron ore prices tumbled as much as 3.6% as steel production cuts at some mills sparked concerns about demand for the steelmaking ingredients.
A major steel producer in eastern China had been urged to idle its blast furnaces after a central government inspection, according to Zhuo Guiqiu, an analyst with Jinrui Capital, who declined to name the producer.
China had pledged to control its annual crude steel output at lower level than last year. The country’s state planner said earlier this year that it would conduct field inspections in June-July.
Dalian coking coal futures surge over 5% on supply crunch reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.