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      Steel demand limited this year: Moody's

      2015-02-25 16:50 Xinhua Web Editor: Qin Dexing
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      Chinese demand for steel will be limited in the next 12 months by the slowing domestic economy and weakness in the real estate market, according to a Moody's report released on Wednesday.

      The situation will pressurize steelmakers in China and throughout Asia as the country accounts for about 70 percent of the region's steel demand, the report said.

      Despite the sluggish demand, Moody's forecast that Chinese steel companies will keep 2015 production close to 2014 levels and boost exports, given the price premiums outside of China.

      The rise in exports will increase downward pressure on steel prices regionally and to a lesser extent globally, the report said.

      Moody's also pointed to growing threats to the stable outlook of the Asian steel industry. Moody's has classed its outlook as stable since August 2014, when the agency changed it from negative.

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