China Scaling Back Steel Capacity Additions
Bloomberg story: Baosteel Scales Back Expansion Target by 38% as China Seeks Capacity Curbs.
China, the biggest steelmaking nation, has pulled back from encouraging mills to get as large as global leader ArcelorMittal as it sought to shutter old plants, curb pollution and power demand. Chinese steelmakers are likely to cut output in the third quarter because of weak demand, Baosteel said this month.
“The world economic recovery path will be bumpy, unpredictable and long,” Baosteel said in its statement today. “China’s economic restructuring will bring uncertainties during the 2010 and 2015 period.”
Additional signs of coming China growth slowdown and bad news for dry bulk freight.