Domestic steel market continues stagnation

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Post Date: 23 Apr 2009    Viewed: 894

Baosteel, China’s largest steelmaker, won’t expect a promising domestic steel market until next year, a stance that is widely seen as a warning to international iron ore suppliers, who have refused to accept mills’ proposals to cut this year’s iron ore contract prices by 40 to 50 percent with a belief that the central government’s four trillion yuan stimulus plan would spur household demand for steel. However, domestic experts see a different picture. The government investment plan is not adequate enough to make up for the absence of investment from private sectors and for shrinking demand from the overseas market. They further note it is possible for the industry to go through the worst times this year due to excessive overcapacity.