I'm not sure what to make of reports of steel mill shutdowns. There are reports of 70 steel mill shutdowns in the last couple of months with more said to happen in the near future. This follows a stressful year for Chinese steel with demand and prices sharply down. Google suggests there are about 3000 steel mills in China. I would guess the failed mills tend to be small mills that are less efficient with less long term contracts, making them less financially stable, than larger mills. This isn't existential but, if true, it does speak to economic stress in the PRC.
I've heard literally dozens of reports of carnage and fiscal doom in China and one single report of a booming economy with a lot of construction activity. I'm inclined to disregard the positive report but it's tough to ignore a dog turd in the jelly salad. Today, there have been reports of massive pay cuts in a ton of government controlled, salaried, employees. Banks, etc. Cuts as deep as 50%.
The largest Chinese residential RE developer, Vanke, has been shut down and it's CEO arrested. This is major. Country Garden has requested major debt restructuring and 50% forgiveness to remain solvent.
