Insight

China: Debt burdens driving steel into bankruptcy

This report is currently unavailable

Further information

Contact us

Submit your details to receive further information about this report.

  • An error has occurred while getting captcha image

Report summary

China’s steel plants are facing increasing pressure from growing credit tightness. Many steel plants are heavily indebted and dependent on short term debt. As a result, a number of steel plants defaulted on their loans, the effect of which is felt far beyond the local economy in which the steel plant operated. In this insight, we investigate the reasons for this new trend, and the implications of the potential for more defaults.

What's included

This report contains

  • Document

    China: Debt burdens driving steel into bankruptcy

    PDF 530.36 KB

Table of contents

  • Executive summary
  • Credit availability dries up as money supply tightens
  • Rising short term debt increasing vulnerability to a credit shock
    • Table 1: Examples of steel companies bankrupt in 2013
    • Table 2: Struggling steel companies, Q1 2014
  • Implications

Tables and charts

This report includes 5 images and tables including:

Images

  • Chart 1: M2 and steel sector capacity growth, 2007-2013
  • Chart 2: Chinese steel: Rising debt, rising risk
  • China: Debt burdens driving steel into bankruptcy: Image 3

Tables

  • China: Debt burdens driving steel into bankruptcy: Table 1
  • China: Debt burdens driving steel into bankruptcy: Table 2

Questions about this report?

    • Europe:
      +44 131 243 4699
    • Americas:
      +1 713 470 1900
    • Asia Pacific:
      +61 2 8224 8898