The rapid spread of Covid-19 infections in at least eight major cities in China is casting doubt on the recovery of steel demand in the country for the rest of 2021, market sources said.
China's National Health Commission said on Monday August 2 that there were 98 new cases reported a day earlier, including 40 cases in Jiangsu province alone. Jiangsu's capital city, Nanjing, has been reporting a high number of cases, and has launched nucleic acid testing since last week.The resurgence has affected the ferrous supply chain, though demand for iron ore and rebar is already weak to begin with as a result of a summer construction lull and expectations of steel production cuts in China in the second half of this year.The new Covid-19 containment measures are expected to have less of an impact on iron ore, the market of which is already in decline as a result of the anticipated production cuts to keep Chinese steel output from...