Goldman Sachs says Chinese steel mills face an extended period of depressed margins as efforts to cut capacity in the sector goes slower than expected, while exports remain high

Goldman Sachs says Chinese steel mills face an extended period of depressed margins as efforts to cut capacity in the sector goes slower than expected, while exports remain high.

Goldman Sachs is suggesting that Chinese steel mills will experience prolonged margin pressure due to slower-than-anticipated capacity cuts, coupled with persistently high export levels. This indicates a potential oversupply in the market, which could weigh on steel prices and impact related commodities, raising concerns about inflation and the broader economic outlook.