Sectors

Steel and coal demand in China to improve, says HSBC

Date: 24 Jul 2010

The country's aluminium and steel producers are actively losing money in the sector due to policy clampdowns, escalating production costs, and continued economic slowdown. But HSBC believes demand for steel and coal will rise in the future. Karina Vachani reports.

Keywords (click to search): [HSBC] [commodities] [aluminium] [steel] [China]

Rising prices and an economic slowdown have led to market fears about dropping demand for metals in China, but HSBC believes prices have hit close to a bottom and that opportunities exist in steel and coal.

Stock valuations in the metals and mining sector have dropped 41% from peak levels earlier this year as market sentiment shifted from fears of worries about an overheating domestic economy to fears of demand in the country dropping.

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