JFE postpones line shutdowns due to Chinese demand

JFE postpones line shutdowns due to Chinese demand

Japanese steel producer JFE Steel has recently announced that it determined to delay its plan to close two production lines due to surging demand in China. One of the subject lines produces electrical appliance steel and the other produces automotive steel. The latter was going to be closed due to concerns about overcapacity. However, JFE Steel gave up the idea of closing these lines as demand from China is still strong. JFE Steel, like many other Japanese steel producers reported record profits due to Chinese demand. However, despite the increase in profits certain analysts state that steel producers face an increase in raw material costs and that Chinese demand will slow down, forcing producers to seek other markets, such as India and Brazil.