20230719 Shandong Iron & Steel Group

A Shandong Iron & Steel Group plant in Jinan, China: The company is one of a number of big Chinese steelmakers forecasting losses in the first half of 2023. © Reuters

China Inc's profit warnings reveal deflationary pressures

Weak demand and falling prices hit key industrial sectors from steel to paper

HONG KONG -- Signs of deflationary pressure in China are growing, as companies warn that weak demand is pushing down prices of key industrial products from petrochemicals and steel to paper and cement.

Listed companies, especially in industrial sectors, have issued profit warnings for the first half of the year, raising questions about the government's optimistic depiction of the economy.

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