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Shipping-steel relationship turns toxic

Shipping companies, steelmakers need to cut capacity, and fast. But the chances of that happening look slim

Iron ore being unloaded at Shanghai port. Steel and shipping companies were both guilty of over-investment in the boom years, spurred on by near-insatiable demand from China, which accounts for two-thirds of global iron ore imports.


THE global steel and shipping industries have for years been locked in a tight embrace. Iron ore and coal, key raw materials for making steel, are among dry bulk shipping companies' most important cargoes.

Now, an oversupply of both ships and steel has turned that...