China's steel output will slow down from record highs

Chinese steel production has retreated from record highs, according to official Chinese data, as demand from the world's largest consumer of steel is showing signs of slowing.
 
In may, crude steel output was 72.6 million tons, up 1.8 percent year-on-year, but less than the 727.80 million tons recorded in April, according to data released Wednesday by the national bureau of statistics. Average daily output is about 2.33 million tons, down 4.1% from the previous month, according to bloomberg. There has been data suggesting that demand for steel may start to weaken as key industrial property cools.
 
According to ZhuYi, a bloomberg industry analyst, it is not hard to see that demand for the future, including real estate, is not holding steady or falling. To be honest, she says, she thinks China's growth momentum could start now.
 
Chinese steelmakers enjoyed a small boom this year, helped by government orders to shut down illegal production and demand for tighter supplies and last year's stimulus measures. Steel prices rose last month to the highest level since 2012, as inventories fell nationwide and Fortescue Metals Group Ltd., a mining company, even said China was in short supply.