China's Largest Steelmaker Baoshan Shutting Mill

Created: 2012-09-27 13:54 EST

Category: Business

China’s largest listed steelmaker, Baoshan Iron & Steel Co., is shutting down one of its plants, as the sluggish manufacturing sector continues to take a toll.The company announced on Thursday that its Shanghai mill will suspend production in order to avoid more operating losses. China is the world’s largest steel producer and consumer, but with the cooling economy, demand has plummeted. Shipbuilding orders are shrinking, and housing construction has also slowed, as regulators attempt to rein in the heated property market. According to industry group China Iron & Steel Association, Chinese steelmakers have largely been losing money this year. The slow demand for steel has pushed down prices, squeezing profit margins for producers. It’s not just the steel industry that’s feeling the pinch. China’s National Bureau of Statistics released a report today, showing profits for Chinese industrial companies falling 6.2% in August compared to last year—the steepest decline in recent months.