KUALA LUMPUR: AmResearch said in an unprecedented move, the Chinese Government is implementing a series of power cuts across major industries, including the steel industry.
It said on Tuesday, Sept 14 that such a move forms part of China's concerted efforts to meet its energy-efficiency targets - and help pare China's steel supply by 9.6% for the rest of the year.
As things stand, latest data released by the National Bureau of Statistics indicated that China's crude steel production has already fallen 1.1% YoY in August to 51.6 million tonne - the first monthly drop in 2010.
AmResearch said more importantly, it reckons that China's continued efforts to crimp supply should set the stage for a stronger recovery in steel prices moving into 4Q10.
'Select Malaysian millers such as ANN JOO RESOURCES BHD [] (Ann Joo) are already repositioning themselves by stocking up its scrap supplies that would last at least until the year-end - ahead of an expected uptick in steel demand after the Ramadan break. We maintain our OVERWEIGHT stance on the steel sector,' it said.
It said on Tuesday, Sept 14 that such a move forms part of China's concerted efforts to meet its energy-efficiency targets - and help pare China's steel supply by 9.6% for the rest of the year.
As things stand, latest data released by the National Bureau of Statistics indicated that China's crude steel production has already fallen 1.1% YoY in August to 51.6 million tonne - the first monthly drop in 2010.
AmResearch said more importantly, it reckons that China's continued efforts to crimp supply should set the stage for a stronger recovery in steel prices moving into 4Q10.
'Select Malaysian millers such as ANN JOO RESOURCES BHD [] (Ann Joo) are already repositioning themselves by stocking up its scrap supplies that would last at least until the year-end - ahead of an expected uptick in steel demand after the Ramadan break. We maintain our OVERWEIGHT stance on the steel sector,' it said.
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