Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The China Iron and Steel Association (CISA) said on Saturday that industry players must ensure supply while keeping prices stable in what is a “complex, volatile, unstable and uncertain market situation.”
In the post on the association’s official WeChat page, Chairman He Wenbo said it is necessary to pay close attention to recovering global steel production, adjusting production and improving industry governance.
Government specifications on the scale of production is “not a long-term solution,” said He.
“Market forces, the rule of law, and internationalisation are still the basic principles we must always abide by,” added He.
China’s daily crude steel output in September fell to the lowest since December 2018, according to Reuters calculations based on official data, as a power crunch in much of the country and environmental curbs slowed down industrial activity. Prices have also been highly volatile.
(By Steven Bian and Engen Tham; Editing by Kim Coghill)
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