A sign of the fall of China's state-owned steel companies?
This report is currently unavailable
Report summary
Dongbei Special Steel Group's recent failure to make a debt payment marked the first default by a provincial state-owned steel company in China. This default presents a dilemma for the Chinese government, as it is committed to allowing struggling companies to close down but must also promote more speciality steel production to reduce reliance on imports. Dongbei Special Steel will most likely be bailed out, probably by another SOE. If it was not a specialty steel producer we would expect the government to let it fail. Once one SOE is allowed to fail, it will trigger more defaults and accelerate the pace of overcapacity cuts.
Table of contents
- A sign of the fall of China's state-owned steel companies?
Tables and charts
This report includes 2 images and tables including:
- Dongbei Special Steel's profit was higher than most China Iron and Steel Association (CISA) members in 2015
- Capacity expansions have tightened cash flow
What's included
This report contains:
Other reports you may be interested in
01 September 2016
Streaming in iron ore: a sign of the future?
Streaming in iron ore: a sign of the future?
A look at streaming agreements following speculation of a potential deal between Vale and China Investment Corp.
$1,05031 March 2016
Global steel long-term outlook Q1 2016
Global steel long-term outlook Q1 2016
Weak demand, persistent overcapacity and low raw material prices will continue to limit the possible recovery in prices.
$9,10031 October 2018
Global steel short-term outlook October 2018
Global steel short-term outlook October 2018
We are betting that both central and regional governments in China will stay the course and stick to environmental targets
$1,800
