From Reuters:
Shanghai steel futures extended gains to hit a three-week high on Tuesday amid more short-term production curbs in a key Chinese city while iron ore prices rallied further as mills built stocks ahead of holidays later this week.
China’s top steel-making city of Tangshan has ordered mills in and near the area to cut production from June 14-21 to ease air pollution, similar to an order it made in May.
The latest order supports hopes of tighter steel supply at a time of slack seasonal demand, said Richard Lu, analyst at CRU consultancy in Beijing. But he said the boost to prices should be fleeting.
“We still hold our view that there are no sustainable factors to support very high prices,” said Lu.
Bit of an echo there.
