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.
Weiping Xiong, the general manager of Aluminum Corporation of China (CHALCO), said that the company will continue to explore investment opportunities in Mongolia’s natural resources sector.
The statement came less than two weeks after CHALCO announced it had dropped plans to acquire stakes in SouthGobi Resources due to regulatory hurdles. SouthGobi operates mining assets in Mongolia.
When asked about CHALCO’s 1H losses of CNY 3.25 billion (USD 512.7 million), Xiong said a weak market had led to the poor performances and that production surpluses in the aluminum market are likely to last beyond the short-term future.
Source (Chinese): Caijing
