August 2012 | Steel Tracker
China’s slowing construction forcing defaults on iron ore shipments: International Long Product Market Analysis
The state of the downstream market remains tenuous with the lack of credit availability for construction spending.
The slower summer months coupled with global macroeconomic uncertainty has led to mills and furnaces defaulting on iron ore shipments. Monthly port stocks in China have been trending near record levels for the past few months as steelmakers curtail production in an effort to support domestic prices.
The state of the downstream market remains tenuous as a lack of credit availability for construction projects as banks become unwilling to lend at lower interest rates has led to price cuts in the spot market. Falling steel demand has undermined the confidence in the economy as concerns and doubts are raised over the slowing GDP growth.
We expect the Chinese government to announce further stimulus plans that will boost construction and...
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