Arab Today, arab today china’s biggest steelmaker shuts shanghai mill
Last Updated : GMT 09:10:47
Arab Today, arab today
Arab Today, arab today

China’s biggest steelmaker shuts Shanghai mill

Arab Today, arab today

Arab Today, arab today China’s biggest steelmaker shuts Shanghai mill

Beijing - Arabstoday

China’s biggest steelmaker said on Thursday it has shut down a mill in Shanghai in a new sign of weakening growth in the world’s second-largest economy. Baosteel Group’s announcement adds to a drumbeat of bad news including a decline in trade and corporate profits despite two interest rate cuts and higher government spending on public works construction. Growth fell to a three-year low in the latest quarter and officials including President Hu Jintao have warned it could fall further before rebounding. Baosteel said it was closing its mill in Shanghai’s Luojing district to avoid mounting losses at the facility amid weak demand for steel plate that is used in shipbuilding and construction. The move by one of China’s most prominent and prosperous companies reflects the painful squeeze that has hit producers of steel, aluminum, cement and some other goods. They grew fast as investment in new factories and other assets soared in the years before the 2008 global crisis and now production capacity far outstrips anaemic demand. “There are signs of severe overcapacity in steelmaking and other industries as well,” said Capital Economics analyst Mark Williams. “It’s going to be painful for a lot of industries in China,” said Williams. “And the pain is going to be felt beyond China’s borders because a lot of companies elsewhere in the world have prospered from selling commodities and capital goods to China. The outlook for them is not so rosy.” China’s demand for steel has been hurt by government curbs imposed on construction to prevent overinvestment and cool surging housing costs. Shipbuilding also has suffered” its industry group says orders are down 50 per cent compared with a year ago and news reports say dozens of shipyards might close for lack of business. The Shanghai mill, which Baosteel bought in 2008 for 14 billion yuan ($2.2 billion), had a production capacity of 3 million tons a year, according to Chinese news reports. China’s economic growth fell to 7.6 per cent in the three months ended in June. That is robust by the standards of the United States and Japan, where growth this year is forecast in low single digits, but is painful for Chinese companies that rely on high growth to drive demand for new factories, apartments and other assets. Analysts are forecasting a rebound late this year or in early 2013 but say it likely will be too weak to support global growth without improvement in the United States and Europe. Hu warned in a speech this month at the Asia Pacific Economic Cooperation meeting in Russia that “pressure for economic growth to slow is obvious.” The communist government has tried to support growth by approving a multibillion-dollar wave of investment projects and construction of public facilities such as subways and airports. But authorities have moved cautiously after their huge stimulus in response to the 2008 downturn ignited inflation and a wasteful building boom. Also on Thursday, the government reported total profits for China’s biggest industrial companies fell for a fifth month in August, declining 6.2 per cent from a year earlier. The National Bureau of Statistics said profits for state-owned companies such as Baosteel fell 12.7 per cent from a year earlier, while those for private sector companies rose 15.1 per cent. Chinese steelmakers lost money four out of the first seven months of the year, according to their industry group, the China Iron & Steel Association. Some industries have been hit even harder. Chinese producers of solar panels, an industry in which supply far outstrips demand, have reported losses of hundreds of millions of dollars this year. China accounts for about half of world steel production and its voracious appetite for imported iron ore has helped to drive economic booms for Australia, Brazil and other suppliers. Baosteel was the first major steel producer to announce the closure of a mill while others have kept mills operating at low capacity, buoyed by loans and subsidies from local governments that want to avoid losing jobs. Baosteel had some 117,000 employees as of the end of 2011, according to the company website. It reported 18 billion yuan ($2.9 billion) in profit last year despite the slowing Chinese economy. Even after China’s growth recovers, analysts say industries such as steel and cement production will see much lower demand than they did during the investment boom. Chinese authorities have pointed to cement, solar panels, wind turbines and other industries as areas in which overcapacity should be reduced, suggesting they might let companies go bankrupt or arrange mergers. From : Gulf news.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china’s biggest steelmaker shuts shanghai mill Arab Today, arab today china’s biggest steelmaker shuts shanghai mill

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china’s biggest steelmaker shuts shanghai mill Arab Today, arab today china’s biggest steelmaker shuts shanghai mill

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday