6.19 PM Saturday, 2 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 05:24 06:37 12:34 15:53 18:25 19:38
02 March 2024

Maanshan cuts capacity by 10% as prices decline

China has annonced a $585bn package to rescue economy. (REUTERS)

By Staff Writer

Maanshan Iron and Steel Co., China's fourth-biggest maker of the construction metal by value, extended losses from the last quarter of 2008 into the first two months of this year, Chairman Gu Jianguo said.

Maanshan is operating at 10 per cent less than its 15 million tonnes annual capacity as steel prices fell since February 6 after a three-month rebound, Gu said yesterday in Beijing where he's attending the National People's Congress.

That compares with cuts as deep as 30 per cent in the fourth quarter, said the head of the Anhui province-based company.

China announced a four trillion yuan ($585 billion) package to support its sagging economy, and will build infrastructure including railways and ports.

Baosteel, the country's largest maker, said steel prices are close to its production costs, indicating the country has not seen "real" demand recovery.

Benchmark steel prices in China surged 46 per cent between November and February as traders replenished inventories.

That prompted smaller mills to increase output, pushing prices down again.

More than 60 per cent of mills in China are losing money, the China Iron and Steel Association said last month.