hinese steel enterprises are now preparing a industrial reform at the beginning of the lunar year of the rabbit.
The reason is that steel enterprises are either shifting to other fields or closing the steel business, as commented by an industrial insider.
Cost pressures are forcing steel enterprises to switch to other business
As until February 15, the new offer sending by one of the three mining giants Rio Tinto to Chinese enterprises has increased from USD 155 per tonne in January to the current USD 168 per tonne which is only the FOB price.
High inventory, high price and low demand is the exact description of the current Chinese steel market.
According to recent statistics, the inventory volume of hot rolled coil in the 29 main cities has increased by 6.44% yearly. And also the government strict implementation of real estate market control policy leaves a highly negative influence on the market demands of steel products.
That is why some Chinese steel enterprises are shifting to non steel business.
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