China’s steel outlook alarm

Cutting output: An employee working at a steel factory in Dalian, Liaoning Province in China. The country is lowering production due to the coronavirus crisis. — Reuters

SINGAPORE: The world’s largest steelmaker has sounded the alarm about the outlook as the coronavirus crisis rips through Asia’s top economy, with China’s premier industry grouping warning of transport snarls, weaker demand and a situation this quarter that “does not look optimistic”.

“Companies are facing restrictions in logistics and transport, trades have been muted and prices of raw materials and steel have slid, which is causing the market’s value to decline, ” the China Iron & Steel Association said.