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Industry profitability collapses by 70%! China's real estate crisis is dragging down steel mill

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Published on 08/02/22 / In Finance & Living

The debt crisis in China's real estate industry has not only spawned a large number of unfinished buildings or rotten tail buildings as they’re called in China, but the crisis has also affected its upstream steel industry.
People may have two general impressions of China's steel industry. First is its size. It’s the world's largest, scale-wise; second is its overcapacity. The latter is a headache for the world, as China floods the market with cheap steel it has shut down steel mills in other countries and left workers unemployed. For nearly a decade, the U.S. and Europe have been fighting the CCP over this issue.

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