Japan's steel industry head urges China to cut output

TOKYO, Feb 27 (Reuters): Chinese steelmakers should cut production to reflect weakening demand from manufacturers amid a coronavirus outbreak as steel inventories climb in the world's biggest steel producer, the head of Japan's steel industry said on Thursday.

China's crude steel output rose 7.2 per cent in January from a year earlier, despite an extended holiday for Lunar New Year celebrations and curbs to rein in the virus. And stockpiles of rebar, stainless steel and other products have built up dramatically in China after the epidemic stalled many construction projects and kept factories shut for weeks.

"We are aware that the steel stockpile in China is rapidly rising," said Yoshihisa Kitano, the chairman of the Japan Iron and Steel Federation. "We want to warn that Chinese steelmills should adjust their output to reflect declining manufacturing activities," he told a news conference.