Goldman Sees China Steel-Capacity Cuts Going Slower Than Thought

Chinese steel mills face an extended period of depressed margins as efforts to cut capacity in the sector go slower-than-expected, while exports remain high, according to Goldman Sachs Group Inc.

The bank cut earnings estimates for Baoshan Iron & Steel Co. and Maanshan Iron & Steel Co. in the 2026-2027 financial year, and said it expected Angang Steel Co. to make deeper losses. It also lowered the gross profit assumption for rebar and hot-rolled coil, in a note released late on Monday.