Steel industry fortunes revive as product prices gain traction

Steel industries in China have witnessed a revival of fortunes during the first nine months of this year and are on track to continue the performance into the first few months of next year also, experts said on Wednesday.

The strong performance has largely been due to higher product prices and reduced supplies due to the overcapacity cuts and production curbs to protect the environment, experts said. They added that steel production may be further curbed during the winter and spring as more local governments come out with fresh plans to curb pollution.

Of the 16 listed steel companies that have announced their earnings numbers till Oct 14, all of them saw an increase in profitability and earnings, with the growth in most cases being in excess of 50 percent, according to data from information provider Wind Info.