Steel’s acute sensitivity to the ebbs and flows in construction and manufacturing makes it a closely-tracked bellwether for China’s economy, which has started to slow down from the second quarter.
“We normally stockpile steel products in winter at relatively lower prices and sell them after the new year holidays when consumption resumes.
Cement production, another construction material, was down around 16% for September-November year-on-year, and was lower versus the same period between 2017 and 2019.
The broadening spillover impact of the property downturn was also seen elsewhere.
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