By The Nation
“The likely stable profitability for Asian steelmakers that we rate is underpinned by the removal of excess steel-production capacity in China and broadly steady demand in Asia as a whole,” said Kai Hu, a Moody's senior vice president.
Moody’s says that steel production capacity in China will continue to decline, due to the Chinese government's supply-side reforms and environmental protection measures. These factors will reduce the supply glut in Asia.
Moody’s said that China drives the outlook for steel companies in Asia because the country represents the region's largest steel consumer as well as producer.
“Overall steel demand in Asia will remain stable, with robust demand growth in South and Southeast Asia, and flat growth in China,” added Hu.