Bloomberg reported that Steel production in China is poised to decline after prices slumped for a fourth week according to Commodore Research & Consultancy.

Mr Jeffrey Landsberg, managing director at the New York based researcher said in an e mailed report said that “Hot rolled coil fell 4% from the previous week the most since September. Inventories of flat and construction steel products in China gained 10% in the last week to approximately 21.6 million tonne.”

He said that “We believe that Chinese steel mills are poised to temporarily reduce production in order to stimulate steel prices. It seems clear that production is outpacing demand.”

The Asian nation is the world’s biggest importer of iron ore a steelmaking raw material.