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.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BelfastLive - 🏆 16. / 77 Read more »