Typhoon may hit steel markets in Guangdong

Typhoon may hit steel markets in Guangdong

The strongest typhoon in 30 years is threatening southern China and could cause major disruptions in steel trading over the next week. So far, Typhoon Damrey has damaged China's southern resort island of Hainan, and the storm is heading towards Guangdong province. Due to the typhoon, there will be a slow down in market activities, and the delivery of steel products from other regions will also be blocked. The steel products planned for Guangdong province will be sent to other markets. Therefore, they may cause a surplus and consequently a decline in steel prices in these other markets. When the typhoon is over, Guangdong will need more steel. Prices will likely see a temporarily increase until the necessary supplies arrive in the province.