Japan’s trading houses brace for more pain from China steel glut

Japan's major trading houses, including Mitsubishi and Itochu, are bracing for a prolonged slump in iron ore and coking coal prices due to a glut of Chinese steel exports. This situation is expected to constrain profits for at least the next six months, as steel exports from China surge amid a downturn in the domestic property market. Despite anti-dumping measures being considered, the impact may take time to materialize. However, rising copper prices could provide some relief, potentially boosting net income for the metals segment.