Commodity Online
BEIJING : In order to minimize huge losses, major steel producers in world’s largest steel producer China, has decided to cut output to support market prices.

Last month, major Chinese steel makers agreed for a twenty percent output reduction to mitigate the market pressure.

Crude steel production has fallen 3.5% and 9.92% respectively in July and August from the 2.15 million tonnes in June.

About 40% of private steel mills in China's top steel producing province of Henan has idled their whole operation, according to figures released by Henan Iron & Steel Association.

And the figure is expected to move up further if the weakness in steel market continues in October. Profits of these steel mills have recorded a negative growth of 14.33 percentage compared with the.42 percentage level in the same period of last year, figures said.

Henan’s top producer Anyang Steel has loosened its annualized goal of 10 million tonnes of production and CNY 50 billion of sales revenue due to low demand.