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Credit Suisse with the note.
China’s 2016 steel capacity reduction is no longer sufficient
2015 was the worst year in memory for the Chinese steel industry. Every steel mill made heavy losses on weak steel prices and iron ore prices were driven down to touch US$47/t for the DecQ in 2015. The heavy steel losses imperiled Chinese banks which were holding steel industry debts, so Chinese authorities acted.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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