Metals and mining industry developments in China

In a remarkable series of reports in recent weeks, it is emerging that top Chinese iron and steelmakers (e.g. WISCO or Wuhan Iron and Steel Company) are starting to diversify away from their core businesses of iron and steelmaking, into non-steel areas such as the production of wine and management of real estate. China’s steel sector is known to have significant overcapacity as well as a lot of highly cost-inefficient plant. Surely it would seem a bit more sensible for Chinese policymakers to concentrate on tackling some of the internal overcapacity and competitiveness issues, rather than trying to bolster steel sector profit margins by moving into completely new business areas such as wine making?

More information on this topic and related steel news on our website at Steelonthenet.com or for more on the WISCO story see http://english.people.com.cn/90001/90778/90860/7370359.html.

 

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