Bloomberg reported that China crude steel production, the world biggest fell for a second month amid regional power shortages during the peak summer season.

According to data provided by the China’s National Statistics of Bureau, output declined by 1% to 59.3 million tonnes in July from 59.9 million tonnes a month ago. Steel production hit a record of 60.3 million tonnes in May.

The statistics bureau said the July steel output gained 16%YoY. For the first seven months, production rose 10% to 410.4 million tonnes.

Mr Hu Yanping a Beijing based analyst with Custeel.com said still the impact of power cuts on steel production may be less than earlier expected. Electricity supplies were rationed in 12 Chinese provinces in mid-July less than a month earlier after rainfall boosted hydropower generation and lowered temperatures.

He said that "Summer heat restrained power supply to some smaller mills in Jiangsu and other provinces last month. Still conditions are unlikely to get worse in August."