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The Hard-to-Believe Steel Shortage That's Unfolding in China

  • Fortescue’s Power says rebar prices have jumped after closures
  • Benchmark steel, iron ore have diverged in recent months
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Iron Ore Has Declined Almost 40% From Feb. High

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The world’s top steelmaker may have a shortage of steel. China has a lack of rebar, according to iron ore miner Fortescue Metals Group Ltd., which says a shortfall of the key product helps to explain a divergence between the price of the commodity it digs up with the alloy it’s made into.

There’s a shortage of rebar, Fortescue’s Chief Executive Officer Nev Power said in a Bloomberg Television interview in Beijing on Monday, citing closures in China of some steel producers, especially operators of induction furnaces. Rebar, or reinforcement bar, is a basic item used to reinforce concrete.