A Chinese official said this week that plans to boost the country’s steel industry by having the government buy and stockpile steel inventories will not going to be carried out.
The idea was to buy as much as 15 million metric tons of steel and place that product in inventory for future use. However, with an annual consumption of 495 million tons, officials decided that the purchase was not enough to impact on the market.
Also influencing the decision were signs that the Chinese steel market, which has been shaken by slowing domestic and global demand in the face of the economic situation, has begun to rebound based on China’s new stimulus program, which is focused on infrastructure projects.
Source: Supply Chain Digest
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