China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
The copper price fell on Monday as worries about demand in China surfaced due to weak economic data and a firmer dollar.
Copper for delivery in September fell 2% on the Comex market in New York, touching $3.59 per pound ($7,898 per tonne).
[Click here for an interactive chart of copper prices]
“Chinese data was disappointing, suggesting a bigger hit than expected from covid-19 restrictions,” a metals trader said, adding that a higher dollar had also triggered fund selling.
“But there is a positive – interest rate cuts from the PBOC (People’s Bank of China).”
China’s economy unexpectedly slowed in July, with growth in industrial output, fixed-asset investment, total social financing, and new yuan loans slowing.
Meanwhile, Chinese property developers sharply cut investment in July, while new construction starts suffered their biggest fall in nearly a decade.
However, China’s central bank unexpectedly cut key interest rates for the second time this year on Monday in an attempt to revive credit demand to support growth.
(With files from Reuters)
