The Chinese Steel Industry at Risk of Default

Category: Photography & Branding

The default Haixin Steel, in the region of Shanxi, has brought to reality the vision of complicated Chinese steel industry sustainable growth. This company has closed its five blast furnaces had in that region, which produced 3.6 million tonnes estimated approximately. It was created in 1993, had bank loans of 3,210 million dollars, and it seems that dragging a debt that could be seven times that amount. No doubt the financial deregulation that has been applied in China, has exposed to less profitable firms, and indeed on the market the idea that companies can fall, the Chinese steel industry has bank loans of approximately 241 billion dollars, and doubt is how much is their debt.