• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » China’s Steel Sector Braces as Virus Impacts Top Producer

China’s Steel Sector Braces as Virus Impacts Top Producer

China’s Steel Sector Braces as Virus Impacts Top Producer
Source: Bloomberg
January 30, 2020
Bloomberg

The world’s top steelmaker is wrestling with the effects of the deadly, rapidly spreading virus that’s seen impacting labor, logistics and demand across China.

“The human impact has significant logistical implications for both transactions and physical movements throughout the steel value chain in China,” according to Andrew Glass, founder of Avatar Commodities Pte and formerly head of iron ore financial trading at Anglo American Plc.

Toyota Motor Corp. said Wednesday it’s halting operations in China until Feb. 9, joining a growing list of global companies that have cut back on business activities in China due to the novel coronavirus.

The top steelmaking hub of Tangshan suspended public transportation from Tuesday morning, with no date set on when services will resume — a potential harbinger of more and stricter government measures nationwide aimed at curbing the spread of the virus that has killed more than 130 people.

Among other recent measures, China extended its Lunar New Year break — a move that’s forecast to affect worker travel, transportation logistics and delay the restart of factory and construction activity.

“We expect a dip in steel demand in the short term,” Rohan Kendall, principal analyst for global iron ore and steel costs at Wood Mackenzie Ltd., said by phone, citing a seasonal build-up of steel inventories and a delay in the restart of construction activity in the nation that accounts for half the world’s production.

However, in the medium term, “it’s not all negative,” as potential stimulus by the government in the second half to counter the economic impact of the virus could boost steel demand, he said. And any reduction in output should be “less severe than currently feared” because of the costs involved in cutting supply, according to Kendall.

Futures for iron ore tumbled earlier this week before rebounding on Wednesday, and traded at $84.73 a ton at 4:39 p.m. in Singapore. “Physical markets remain on holiday and hence the volatility in futures markets in recent days,” said Tomas Gutierrez, analyst at Kallanish Commodities Ltd. “The true market level will only really be known in the next two weeks.”

At mills, any disruption to manpower and logistics has raised concerns about output. While steelmakers will have a few weeks of raw-material inventory, they may adjust production plans if they expect logistics to be disrupted for more than two weeks, according to CRU Group senior analyst Andrew Gadd.

“The duration and the extent of impact is extremely hard to predict at this stage due to uncertainties around how the handling of the epidemic itself evolves,” said Gadd. “Volatility in pricing is expected and will be sensitive to newsflow.”

RELATED CONTENT

RELATED VIDEOS

Global Supply Chain Management Global Trade & Economics Supply Chain Security & Risk Mgmt Automotive Industrial Manufacturing
KEYWORDS Automotive China Industrial Manufacturing SC Security & Risk Mgmt
  • Related Articles

    China Economy Braces for Further Slump as COVID, Protests Spread

    China Cancels Flights as It Braces for Strongest Typhoon of 2019

    A Battery Maker Sees Virus as Spur to Wrest Business From China

Bloomberg

CVC Nears Deal to Acquire Logistics Firm Scan Global

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A WORKER IN A WAREHOUSE, SUPERIMPOSED WITH GRAPHICS SHOWING SUPPLY NETWORK

    Enabling Intelligent Visibility With Supply Chain Analytics

    Data Management (Big Data/IoT/Blockchain)
  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology
  • GSCMS-Promo.png

    Watch: Introducing the Global Supply Chain Marketing Summit

    Education & Professional Development
  • A COMPLEX SERIES OF ROADWAYS AND RAMPS, SEEN FROM HIGH ABOVE, IS PARTLY SHROUDED BY CLOUD

    Supply Chain Visibility Isn’t Just a Catchphrase; It’s an Imperative

    Logistics
  • A MAN IN A SUIT SITS LEANING OVER THE BACK OF A CHAIR IN A WOOD-PANELLED ROOM FULL OF LARGE PHOTOS OF OTHER MEN IN SUITS

    UPS Faces Rising Labor Costs, Strike Risk in Upcoming Union Fight

    Last Mile Delivery

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing