China’s steel sector is echoing concerns about the country’s broader economy. While there have been moves by the government to curb capacity, according to a new research note by Goldman Sachs’ commodities division, demand for steel and consequently iron ore is falling in China as the effects of credit led stimulus to wear off.
Earlier this week Chinese rebar prices experienced a bout of volatility on government plans to cut steel mill utilization in Tangshan. The government has announced plans to halt sintering plants and blast furnaces in the Tangshan region to curb steel production and support prices. In the near-term, the loss of production would provide a very material impact to China’s steel sector. By taking the number...
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