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    Market Segment

    November 19, 2019

    CRU: China’s Steel Capacity Probe May Need Timely Action to Prevent a Crisis

    Written by Iris Speelmanns

    By CRU Analysts Kevin Bai and Iris Speelmanns, from CRU’s Iron Ore Costs

    China has launched a probe into steelmaking capacity to understand the true state of the industry. If the government views the current state as detrimental to its reform agenda, orders to curb supply could be forthcoming. If enough capacity is curbed, this would tighten the market and lift margins from current lows. That said, in CRU’s view, timely action on capacity may be needed to prevent another crisis developing as recent stimulus measures unwind and steel demand softens.

    Iris Speelmanns

    Read more from Iris Speelmanns

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