China’s steel industry is facing a 21-month low in profits, an possible losses, due to rising iron ore and coal costs. The Chinese government has been trying to boost domestic demand by encouraging more investment into the country’s infrastructure sector, but it faces stiff competition from other countries that have also seen their economies slow down. gross profit margins were stable at around 100-200 yuan/t ($15-30/t) in January, with rebar higher at Yn400-500/t ($60-74/t), mills told Argus. Meanwhile, steel prices in China have been frozen owing to the week-long Lunar New Year holiday, ending 10 February, but prices are expected to rise following the holiday to offset the higher costs and to support the peak spring construction demand.
China’s steel industry is facing a 21-month low in profits, an possible losses, due to rising iron ore and coal costs. The Chinese government has been trying to boost domestic demand by encouraging more investment into the country’s infrastructure sector, but it faces stiff competition from other countries that have also seen their economies slow down. Meanwhile, steel prices in China have been frozen owing to the week-long Lunar New Year holiday, ending 10 February, but prices are expected to rise following the holiday to offset the higher costs and to support the peak spring construction demand.