Chinese steel prices hit record lows and caused at least one major closure Tuesday and aluminum delivery premiums leveled off in Europe.
Closures in the Chinese Steel Sector
Chinese steel prices hit record lows on Tuesday amid prolonged worries over shrinking demand in the world’s top consumer that market sources say has forced one of the country’s largest private producers to cease output.
The shutdown by Tangshan Songting Iron & Steel, with an annual capacity of 5 million metric tons, would be one of the biggest in the sector’s years-long downturn as the world’s No.2 economy slows, traders and analysts said.
Aluminum Surcharges Fall in Europe
Surcharges for physical delivery of aluminum in Europe leveled off after recent gains and may come under pressure from additional supply if Chinese exports rebound and some inventories are liquidated.
The surcharges, or premiums, which consumers pay on top of the London Metal Exchange (LME) cash price for immediate delivery of metal, have gradually climbed over the past couple of months amid tighter availability.