China’s Property Crisis Threatens to Drag Down Its Steel Industry
Almost a third of China’s steel mills could go into bankruptcy in a squeeze that’s likely to last five years, Li Ganpo, founder and chairman of Hebei Jingye Steel Group, warned at a private company meeting in June. “The whole sector is losing money and I can’t see a turning point for now,” he said, according to a transcript of the gathering seen by Bloomberg News.
After more than a year of property pain, the outlook is worsening as the government baulks at big bailouts and keeps stringent debt rules in place. A steel purchasing managers index for July tumbled to its lowest reading since 2008, and Goldman Sachs Group Inc. sees demand down by 5% this year. The property sector accounts for at least a third of Chinese steel demand.
In the short term, the major obstacle for steel is the large stock of unfinished properties, highlighted by a recent wave of. Prices of construction steel have also plunged, with rebar — twisted steel rods that strengthen concrete — falling to a two-year low last week. That’s even as output has dropped to the lowest in Mysteel data that goes back to 2015.“Demand is slipping fast,” Xiao Zunhu, chairman of state-owned Hunan Valin Steel Co.
If Pelosi brings war, the steel industry will recover.
شغل عالى والله يا امريكا بايدن الخرف
🤣🤣🤣You are so talented in telling joke
Chinese steel in utter rubbish. Got to be the worst in the World for quality.
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