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MAR 17, 2015
A state-owned Chinese steelmaker will close most of its facilities after falling steel prices forced it to halt production and lay off workers, a sign of the damage that persistent overcapacity is doing to the sector.
Pangang Group Chengdu Steel & Vanadium Co, a subsidiary of Panzhihua Steel in China’s southwestern Sichuan province, will halt production later this month after suffering huge losses, a mill official and industry sources said.
Chinese steelmakers are expected to face more headwinds this year, due to soaring environmental costs, overcapacity and slower demand growth in the world’s top consumer. More inefficient mills are likely to shut down permanently.
Panzhihua, China “Vanadium City”