Posted on 05 Jun 2024
Commodities giant Cargill Inc has ceased its steel trading business in mainland China, after years of struggling with slower activity amid the country’s property-led downturn.
The company stopped steel trading this week, according to people familiar with the matter, who asked not to be named as the information is private. The move doesn’t affect Cargill’s steel business outside of China, or its iron ore desk, the people said.
Cargill has “made the decision to optimise our model for onshore physical steel trading, so that we can bring the best of our capabilities to serve customers in China and the world,” spokeswoman Bridget Christenson said by email.
China’s protracted property crisis has ended two decades of rapid growth in the nation’s steel demand, and commodities traders have suffered from much tighter liquidity. Cargill eliminated nine positions in its steel trading unit in November 2022.
“China remains a critical part of Cargill’s metals business and we are committed to serve China customers, leveraging our global expertise in trading and risk management,” Christenson said.
Source:The Edge
