China's steel production continues at record pace

Steel output in China rose 10% year-over-year to its highest monthly rate, according to the country's statistics bureau.

“Steel mills are making record profits, so any steel mill that is not required to stop or cut production has essentially no reason to hold it back,” said Kevin Bye, an analyst at the CRU consulting group. “Manufacturing is still very bullish in the second half, but we see a possible drop in prices as we expect demand to be slightly more subdued, especially in sectors such as automobiles and technology. The profitability is unreasonably high and cannot be sustainable. "

The sharp increase in production comes as the Trump administration continues its internal review of reports of potential restrictions on steel imports. The White House has repeatedly accused China of dumping steel and aluminum into the market.