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The latest figure puts an end to a month-long period of continues growth, from 2.15 million tpd in late May to 2.18 million tpd in late June, based on data released by China Iron & Steel Assn (Cisa).

Output of Cisa members, comprising mainly medium-sized and large steel mills, saw a smaller slip of 3.8% from late June to 1.69 million tpd.

“Production in the coming periods may continue to fall, as smaller steel mills are forced to cut production due to stricter environmental inspections,” a steel mill source in Shanghai told Steel First.

Cisa members’ steel inventory stood at 12.75 million tonnes as at July 10, up 0.58% from the end of June.