International Steel Mills
April 3, 2014
Another China Steelmaker Folds
Written by Sandy Williams
Another Chinese steelmaker has filed for bankruptcy. Jiangsu Shente Steel Co., Ltd., a large scale mill and distribution center, is the latest company forced to close. Earlier in the month Haixen Steel, a steel mill in China’s Shanxi province, shut down operations after defaulting on loans, fueling concerns of widespread default for Chinese corporations.
Tighter credit along with overcapacity, falling prices, weak demand and environmental regulations have taken a toll on the Chinese steel industry. In the first two months of 2014, Chinese large and mid-sized steel companies had total losses of 2.8 billion yuan ($454 million), said Li Xinchaung, head of the China Metallurgical Industry Planning and Research Institute, at the 5th China Steel Planning Forum on March 29.
