China Property Crisis to Weigh on Steel Prices Through Next Year

China has cut output in each of the past two years after production topped 1 billion tons and plans to do so again in 2023.

Chinese steel prices are likely to drop through 2024 as demand growth weakens and excess capacity weighs on the market, according to Capital Economics Ltd.

The protracted crisisBloomberg Terminal in China’s property sector is the biggest burden on prices, the London-based research firm said in note on Tuesday. But Beijing’s efforts to stimulate the economy after a weak recovery from the pandemic are unlikely to do more than just stem declines in the housing market.