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Steelmakers' profits to dwindle during off season
Dec 28, 2016  15:59:39
Abstraction: We believe the profit of steelmakers will dwindle further. The downward trend of spot steel price would sustain. Even though the price in futures market may vibrate, speculation in capital market alone cannot reverse the downside in spot market.
In 2016, both the production and trading of Chinese steel mills have been dramatically improved under the backdrop of the supply-side structural reform. From January to October in 2016, key steel mills in China earned a total profit of 28 billion yuan comparing with a loss of 34.64 billion yuan...

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