Lange Steel, a leading market watcher in China, expects steel mills to continue struggling for profits in November, amid high financial costs.
Although the central bank has cut interest rate and deposit reserve ratio more than once since the beginning of this year, the financial expenses of major steelmakers grew 2.69 percent on year in September when their borrowings from banks reduced 2.02 percent.
The steelmakers are increasing borrowings from non-bank channels, because of the adding difficulties of borrowing from banks, said Wang Guoqing, analyst with Lange Steel.
The oversupply issue will further intensify in November as the steel demand shrinks under cold weather, Wang added.
Latest comments