Part 5/8:
The woes of the industry are not limited to international tariffs and trade barriers. Domestically, the Chinese steel sector is grappling with severe overcapacity, which has led to dismal profit margins, increasing bankruptcies, and layoffs. Statistics reveal that over half of the listed steel companies are operating at a loss, with bankruptcy announcements becoming all too common.
Specific companies, such as Ansteel and Baosteel, reflect the grim reality faced by the industry—one marked by substantial financial losses leading to hiring freezes and cost-cutting measures. By mid-2023, nearly 65% of steel producers were reported to be in the red, signaling a dire state of financial affairs.