Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone
ANGANG Steel Co has started to halt a blast furnace on weakening demand, showing iron ore consumption may retreat further in China.
The No. 2 furnace will be shuttered for one-and-a-half months, cutting annual output by about 320,000 tons of iron, board secretary Fu Jihui said yesterday by phone. “We’re making production adjustments because demand is weak and also to carry out our maintenance plan,” Fu said.
Steel prices in China have dropped to the lowest in 10 months amid the slowing global economy and weaker construction demand, sending prices for raw materials such as iron ore to the lowest in almost a year. Angang said last Friday that its net income in the first nine months may have fallen 91 percent from a year earlier.
“There is no sign for any recovery on Angang’s earnings in the fourth quarter,” said Helen Wang, an analyst at MF Global Holdings Ltd. – Bloomberg