Chinese steel demand slumped in the first quarter of 2015 according to China’s Iron and Steel Association (CISA).
On its website yesterday CISA noted that domestic demand slumped by 6% Bloomberg reported.
CISA also noted overall steel output declined by 1.7% to 200.1 million tonnes – the first Q1 decline reported in the past 20 years.
The statement helps explain the huge sell off in Dalian iron ore futures on Wednesday, something that saw the spot price fall 4.6% to $US57.13 overnight according to data provided by Metal Bulletin.
With concerns about the outlook for steel output returning following a brief hiatus in recent weeks it’s likely that plenty will be watching Dalian iron futures closely when they resume trade later this morning.
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