Steel and raw materials prices plummeted in China on Wednesday, leading to multi-week lows as more stock exchanges liquidated positions with excess upside risk as Beijing considers flexible its constraints.
China is considering allowing its northern provinces to tackle selected heavy industry production cuts to curb emissions during the winter, a source linked to the plan said on Tuesday.
This would contradict the original draft plan, which calls for a 50 percent cut in steel production and 30 percent in primary aluminum in some areas, similar to last winter's measures.
China's production restrictions to tackle pollution have pushed steel prices up sharply since last year, bringing rebar to a seven-year high and hot rolled steel at a record high in August.
“Local governments also tend to be less flexible in policy implementation when given flexibility, especially because increased steel production will help boost jobs and add to government tax revenues,” she said.
Steel prices fell along with steel, led by coke, a processed form of coking coal.
Rolled steel responded by giving more freedom to local authorities
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Azovpromstal® 13 September 2018 г. 09:56 |
