The mainland's steel, iron ore and coking coal industries remain in the doldrums with an uncertain outlook as there is no sign Beijing will launch economic stimulus policies, according to a senior official of a firm involved in all three sectors.
"The entire industry chain is in a depressed state," said Shougang Concord International Enterprises managing director Li Shaofeng after the firm's annual shareholders meeting. It is one of six listed units of mainland steel major Shougang Corporation.
"The central government has not launched any apparent policies to stimulate the economy, so the steel industry is still in a wait-and-see mode," he said. "There is not much improvement and funding pressure remains a big problem for steel enterprises."
Li said average year-to-date steel prices are similar to those of last year's fourth quarter - an extension of the trough in the current down-cycle that began from last year's first quarter. Small recoveries in prices in this year's first quarter were offset by falls in the second quarter.
Steel raw materials have also been hit, with prices of iron ore and coking coal trading about 40 per cent below last year's peaks.