China, the largest steel maker in the world, saw its output of crude steel rise 7.8% year on year to a monthly record of 60.25 million metric tons in May, according to the latest statistics released by the National Bureau of Statistics.

The crude steel output was 2.07% more than the 59.03 million metric tons in April.

The NBS said earlier that the country’s crude steel output grew 8.3% year on year to 229.71 million metric tons in the first four months.

Last month, China’s output of steel products increased 10.6% year on year to 76.37 million metric tons. The figure was higher than the 73.15 million metric tons in April.

Baoshan Iron and Steel<600019>, a leading steel producer in China also known as Baosteel, said earlier this month that it would cut its main product prices for July bookings because of weak demand, reflecting the second price reduction since September 2010.

The 77 large- and medium-sized steel enterprises in China earned a combined net profit of RMB 32.98 billion in the first four months of this year, 2.12% less than in the same period of last year, said Luo Bingsheng, a senior official with the China Iron and Steel Association, China Knowledge reported earlier.

It was reported that Taiwan’s China Steel Corp. (CSC) will announce the new prices of bar and wire rod for April and May in the end of this month.

The prices are expected to be increased sharply. However, the domestic market currently is sluggish. Most buyers seem to be soft to get into the steel market.

According to market source, downstream customers would place orders after Chinese New Year because they will make sure the latest price released from CSC after the long holiday.

It was reported that Korea’s BNG Steel has raised its stainless steel prices for February.

The company was bringing up its stainless steel 300 series prices by 117,000 won/ton. The company’s 304 prices rose to 3.92 million won/ton from 3.803 million won/ton, while 430 prices remained unchanged.

Posco also raised prices by up to 3.3 percent for February due to rising raw material prices.

It was reported from China Daily that China is to speed up restructuring in the steel sector.

Chinese top five major steel mills are facing long-standing problems of overcapacity and low industry concentration.

According to data from 2010 steel industry council meeting, the 2009 output of China’s 5 biggest steel mills only accounted for 29 percent of the national total and much lower than the 45 percent goal set by the State Council for 2011.

Chinese government has set up a goal of further optimizing the industry structure China’s steel sector and strengthening its competitiveness in the international market from this year.

As we all know that in recent months, the U.S. has imposed continuous anti-dumping measures against iron and steel products imported from China.

In June, 2009, the U.S. Department of Commerce launched three dual investigations, namely anti-dumping and countervailing investigations, in ten days onto China-made wire trays, steel grating, and stranded steel wire on June 26, June 19 and June 17.

On December 31, 2009, the U.S. International Trade Commission (ITC) made affirmative determination in its final phase countervailing duty investigation on China-made oil pipes, imposing duties from 10.36 percent to 15.78 percent.

On January 5, 2010, the U.S. government slapped preliminary anti-dumping duties on imports of more than 300 million dollars worth on wire decking from China. Tariffs of between 42.61 to 289 percent will be imposed and collected until a final determination is made in the case.

Wu Guohua, an analyst with Hengyang Valin Steel Tube Co. Ltd., one of China’s largest steel pipe producer, noted that the company’s’ export to the U.S. dropped by around 50 percent in 2009. The 2008 figure was 190,000 tons.

The U.S. has so far refused to recognize China’s market economy status. Instead, it chose another country as a substitute to calculate Chinese steel mills’ cost. As a result, China was accused of dumping goods to the U.S. at an unreasonably low price.

Facing mounting trade frictions, Chinese steel producers have started adjusting their market strategies. Baosteel, China’s largest iron and steel maker has ceased its steel pipe export to the U.S. since last April. It signed a cooperation agreement with China National Offshore Oil Corp (CNOOC), striving to expand its domestic market. Hengyang Valin Steel Tube Co. Ltd. chose to cultivate new business in emerging markets in Africa, South Asia, Middle East and Latin America.

Wuhan Iron and Steel Group (Wugang) and Laigang Steel Corp. also expressed their anxiety about the international trade environment, although trade frictions have no severe impact on them. “More steel products may face sanctions in the future. We feel high pressure,” said an official with Laigang Corp.

Li Hongbo, director of Wugang’s sales and marketing center, noted that the U.S. is “over sensitive” to China’s steel export products. “Chinese steelmakers should actively answer the anti-dumping cases, and make more efforts in R&D and market expansion, to avoid probable trade frictions.”

It is reported that China’s steel industry voiced opposition to a proposed joint mining venture between global mining giants Rio Tinto Ltd and BHP Billiton Ltd and called for global opposition against it.

The world’s No. 2 and No. 3 in the iron ore market signed binding agreements earlier this month to combine their Western Australian iron-ore assets, with expected savings of at least US$10 billion.

“This is a monopoly in a disguised form, and it will greatly threaten the development of the global steel industry,” the China Iron and Steel Association said in a statement posted online yesterday.

It called for countries to “block any attempt at a monopoly by Rio and BHP” by taking anti-monopoly measures.

China’s Ministry of Commerce said on Wednesday that it hadn’t received regulatory review applications from the two companies.

Australia is a key supplier of iron ore and other resources for China’s fast-growing economy.

China, the world’s largest iron ore importer, failed to reach an agreement with suppliers in price talks this year after the association insisted on a deeper price cut than Rio and BHP had agreed with other Asian countries.

Industrial analysts expect iron ore prices to rise about 10 to 20 percent next year on increasing demand as the world’s economy recovers.

Rio and BHP said submissions had been made with both the European Union and the Australian Competition and Consumer Commission, and they expected to complete the deal in the second half of next year.

Last month, European steel makers called for EU antitrust regulators to investigate the project. In 2008, EU opposition to a hostile bid by BHP for Rio Tinto forced it to abandon a takeover attempt.

It is said from its chairman on Friday that China’s top listed steel firm, Baoshan Iron and Steel Co Ltd or Baosteel, will consider mergers and acquisitions in the industry and look out for opportunities to invest abroad.

Xu Lejiang told reporters on the sidelines of a conference that there were not many opportunities for Baosteel to develop through building new production capacity.

Baosteel can only move forward by participating in M&As in the industry and through partnerships and was also looking abroad for opportunities.