From the China Securities Journal (via MNI) – they report on comments from Dai Zhihao, General Manager of Baoshan Iron & Steel Co.:
- It may take three years for the domestic steel sector to “get through the winter”
- He said surplus steel amounts to 200 million tons while steel consumption is estimated around 800 million tons this year
- The capacity utilization ratio of the steel sector is lower than 80% and downstream demand growth remains low
- Warned that the risks in the steel chain have accelerated exposing other issues such as iron ore financing risks and it is unclear when the impact on the steel sector will end
