Commodity trading giant Cargill has halted its steel business in mainland China, after years of suffering due to a slowdown in activity amid the country’s real estate recession.

The company halted steel trading this week, according to people familiar with the matter, who requested anonymity because the information is private. The move does not affect Cargill’s steel business outside China, or its iron ore division, the people said.

“Cargill has made the decision to improve our model of domestic physical steel trading so that we can offer the best of our capabilities to serve customers in China and globally,” Cargill spokeswoman Bridget Christenson said via email.

China’s protracted real estate crisis has ended two decades of rapid growth in steel demand in the country, and commodities traders have struggled with cash shortages. Cargill cut nine jobs at its steel trading unit in November 2022.

Christenson added: “China remains an important part of Cargill’s metals business, and we are committed to serving China customers by leveraging our global expertise in trade and risk management.”