The malaise in China's property sector casts a long shadow over iron ore and coking coal, two key steelmaking ingredients.
Last month, the chairman of China's Baowu Steel Group, the world's biggest steelmaker, said the industry faces a "harsh winter" as the world's second-biggest economy grapples with a downturn in its housing market. That market is a key source of demand for steel and a driver of the broader economy, which consumes even more of the alloy.
"In China, which has thrown the wettest of blankets over the global steel sector, steel inventories remain elevated at … seasonal levels not seen since 2014, which was a demonstrably terrible year for the steel industry," said Matthew Warder, CEO of energy-, metals- and mining-focused consultancy and analytics firm Seawolf Research.
Also Read: Consol Energy And Arch Resources To Merge In $5B Domestic Coal Entity
To try to lower those inventory levels, China has increased its exports of steel, much to the consternation of the global ...
