Chinese steel industry losses snowball as demand falls and costs rise

Harsh conditions incentivize exports, risking more trade tensions A steel plant of Shandong Iron & Steel Group in Jinan, Shandong province: The company says it is being "squeezed from both ends," referring to the fall in market prices and increase in materials costs. © Reuters TOKYO -- Pressure on the Chinese steel sector has intensified as producers suffer from demand-sapping economic stagnation coupled with rising costs, especially for coal, raising the prospect that they will push more output abroad.