China NBS is worried about the growing Steel glut

China National Bureau of Statistics (NBS) data released today showed the China’s steel output rose 4.9% in April to a record high of 72.78 million tonnes.

As per Reuters report, the NBS is worried about a growing glut in Steel as demand remains flat, while the mills continue to produce more to benefit from the rising prices.

There is a correlation between steel prices and iron ore, as the former is one of the major determinants of steel prices. The Steel glut fears is bad news for iron ore in the long run.