As steel prices continued to hit new lows
during the day, participants speaking to Steel First warned of dark economic days ahead
, with words like “crisis” and “recession” peppering conversations.
“It is dangerous for the steel market if the crash in the stock market continues, as it arouses concerns over a new economic recession and will further dampen demand for the manufacturing sector,” a Beijing-based analyst said.
The Shanghai Composite Index capped its biggest three-week decline in over two decades last Friday, as short-selling by speculators exacerbated an already volatile market.
The index has slumped by almost 30% or 1,500 points since mid-June,...