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The steel industry is facing too much supply and tumbling prices. Much of the problem is coming from China, where CCP policies have led to overcapacity.
To offset the property crisis and weak domestic demand, Beijing invested in manufacturing capacity. Now, it has too much and no way to use it.
China is in the crosshairs of proposed new tariffs from the US, EU that target countries producing more steel than the market demands.
Financial markets reacted first. China’s stock market is down 22 percent this year.
According to Woody Brock of Strategic Economic Decisions, China has run out of roads to invest it.
