Slow down in China steel shops

[arunmrao]

Sorry, this is not a technical topic, but I am sure it holds interest to most of us. The yuan devaluation by 3.5% has shaken the world markets. But, more is happening in those large mills and foundries, which are affected. I read on the net, that the local government is artificially supporting these industries presently.

Africa, is flooded with Chinese equipments and people. (not liked by the locals due to poor performance/reliability)

I shall be interested if some of our members have direct information about the status of steel plants in China.

Thanks in anticipation.


"Even,if you are a minority of one, truth is the truth."

Mahatma Gandhi.

 

[TVP]

Huge mills like China Baosteel likely will not be affected much, but many of the small, local mills will most definitely be affected. I believe I read somewhere that China intends to reduce the number of small, highly-poluting mills, foundries, etc.

 

[EdStainless]

There have also been many mills (and cement and chemical plants) forced to close for August in order to have a chance that the air would be clean for yesterdays parade in Beijing. I have a hunch that he smaller plants will not be allowed to restart.
There are a lot of unanswered questions.
The very poor performance of Chinese regulators concerning the plunge in the stock market has shaken things up a lot.
Devaluing the currency is a very expensive route. It distorts prices and destroys good will. This move set back global acceptance of the Yuan at least 5 years. But they can't let businesses close of fail, unemployment leads to hunger, which leads to political instability.

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P.E. Metallurgy, Plymouth Tube

 

[arunmrao]

I have the same concerns expressed in the above posts. It is the SMEs, that are seriously affected. However, they are being supported by local governments and banks,else it might lead to severe unemployment.

Cheaper Chinese products in the international market, will have to be seen. The GDP of China is 7-7.5%, down from the 2 digit numbers.


"Even,if you are a minority of one, truth is the truth."

Mahatma Gandhi.

 

[EdStainless]

Russia will be down 6% in GDP this year with the Ruble worth less than half of what it was.

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P.E. Metallurgy, Plymouth Tube

 

[metengr]

Other countries will step in and meet supply, look at India and Brazil. These are countries poised to move forward. Just a matter of time.