Monday, April 25,
“Prices of iron ore, coking coal, electricity and transportation are poised to rise, further pushing up the production cost, while steel demand from downstream sectors will gradually simmer down,” said Wuhan steel of China which is the world’s fifth-biggest steel producer.*
China’s steel sector will be squeezed by a disorderly rise in raw material prices as well as overcapacity this year with its profit margins far lower than the average of other sectors.
Wuhan Steel also added that the iron ore supply shortage will persist in the long run. China would suffer a shortage of iron ore supply over the next 10 years as the country is still expanding its steel capacity.
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