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Steelmakers are worth the most in years

Chinese infra spending has boosted local demand, just as govt shuttered mn of tons of overcapacity

Thomas Biesheuvel | Bloomberg 

Steel stocks are trading at the highest since 2011 and it’s mostly thanks to the industry’s biggest menace in recent years — China. Demand in China, which produces half the world’s steel, has been surprisingly strong this year and the country closed some plants to ease a glut that had spread across the globe. That’s led to a steep drop in exports, helping steel prices extend a recovery and pushing a Bloomberg gauge of global steel stocks up 45 per cent in the past year. That’s triple the advance in the Bloomberg World Mining Index. China has ...

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First Published: Tue, July 25 2017. 02:07 IST
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