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.
Shares of NMDC Ltd. and Sesa Goa Ltd. are anticipated to remain buoyed as iron ore prices trade at a seven-month high, helped by increased factory output in China and a rise in retail sales over the past three months.
According to Bloomberg, Chinese ore imports totaled 65.78 million metric tons in November, down 4.6% YoY. Stockpiles at China’s major ports declined 3.3% to 71.32 million metric tons as of December 21.
Chinese inventories have slid for eight consecutive weeks. Mysteel.com reported that weekly inventories declined to 73.81 million metric tons as of December 21.
Sesa Goa’s gains from this development are expected to be limited, however, as some of the company’s mines are still subject to a ban from several state governments.
Source: The Hindu Business Line is an international newspaper based in Chennai, India that covers business and financial news.
Source (English): The Hindu Business Line via Brightwire News.
