For China’s steel
industry, the world’s largest, winter has arrived early and it is shaping up to
be one of the harshest in years with a slowing economy and escalation of the
property market crisis tanking demand and evaporating profits.
The property sector, which accounts for over one third of the
country’s steel consumption, has been squeezed by a liquidity crunch and
sliding sales since the end of last year. This comes amid an ever-expanding
mortgage boycott by disgruntled home buyers over stalled construction projects.