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CHINA'S steel sector is toying with falling into a bear market, with prices almost down 20 per cent in the past three months as the industry's run of record production meets the reality of a slowing economy and trade disputes.
China’s government-backed Fujian Sangang Group purchased iron- and steel-making capacity from a bankrupt plant in western China, the company said on Monday, allowing the company to expand its own capacity later.
China's steel output hit record levels in October, rising for a third straight month as mills rushed to boost output ahead of winter production cuts.
Daily output of the five items – comprising rebar, wire rod, medium plate, and hot-rolled, and cold-rolled coils – is expected to rise by 40,000 tonnes/day or 2.3% on month
China’s steel output will climb above 900 million tonnes in 2018, the chairman of the China’s largest producer of the building material said, marking the highest level on record.
Chinese steel companies have boosted their profits in the three months ending September, which signals that these state-owned firms' cost-cutting efforts are working.
Key steel producing Chinese provinces have announced guidelines for implementing output cuts for polluting industries, including steel, but most said details on implementation will be decided by individual cities.
As China’s November deadline to incorporate more vanadium in its steel rebar takes effect tomorrow, vanadium investors are left wondering the impact this will have on the commodity, which is already experiencing a tight market that has driven its price up more than 840% in the last two years.
Production cuts ordered for this winter by China’s top steelmaking city Tangshan look less restrictive than last year, potentially keeping output high even as the city seeks to fight pollution by cutting smokestack smog.
China’s steelmakers pushed production rates to record levels last month, underscoring a broadly bullish picture for mills in the world’s biggest market as prices rally again.
Focus on precision parts manufacturers
