A Chinese steel industry association is shrugging off suggestions that the recent rallies in steel futures are due to imbalance between demand and supply.
A new statement from the China Iron and Steel Association says the rise in steel futures is due to misinterpretations of industrial and environmental policies.
Steel rebar futures for September have climbed around 40 percent on the Shanghai Futures Exchange.
The price of hot-rolled coil, a key steel product, have surged more than 20-percent since June.
Chinese authorities are in the midst of cutting steel capacity to try to curb pollution and excess supplies.
With more on this, we are joined by Mike Bastin, Director of China Business Center with Southampton Solent University in the UK.
