Increased Crude Steel Production Capacity in Mainland China Poses Risks to Steel Market

Reported 10 months ago

Mainland China's crude steel production in May reached 93.6 million tons, up 3.87% annually, indicating an oversupply risk in the steel market. Despite positive signs like reduced social steel inventories in April and May along with government policies to stimulate the economy, recent increase in production capacity of mainland Chinese steel mills has led to the emergence of an oversupply crisis. This excess capacity is expected to flow into foreign markets, potentially destabilizing the Asian and global steel markets.

Source: YAHOO

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