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According to Mr Luo Bingsheng deputy secretary of China Iron & Steel Association, the steep steel prices will hold steady in the second half of this year, but steel mills should prevent steel prices from wide shaking on increased domestic supply.

Mr Luo said that “China's crude steel output growth continues the uptrend in the first half, albeit at a moderating pace. And the output growth is poised to pick up in the second half with the commissioning of Bayuquan and Caofeidian projects.”

Mr Luo said that domestic steel supply and demand relationship will be changed as a result of the accelerating crude steel output growth, softening demand and sliding export and which might lead to sharp ups and downs for steel prices.

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