A continuous decline in steel prices in China has already resulted in massive shutdowns. Moreover, market players point out that the government is more restrained in supporting private steelmakers this year, which may speed up the process of cutting excess capacity in China in the near future.
Since the beginning of 2015 twenty three steelmaking companies have suspended 40 million tpy of BF operations. Most of stoppages took place in the second half of the year, when mills’ losses reached critical levels. “According to estimates, billet producers have been losing RMB 200-300/t or about $40/t, they simply couldn’t survive without help from the state,” a large Chinese trader has told Metal Expert…
