Chinese steel exports scare the global market

From Brazil to Canada, from Mexico to Turkey, overseas steel manufacturers are very dissatisfied with China.

why? The reason they put forward in a joint public statement issued this week by the World Steel Association is that half of the world's steel is produced in China, but China's production capacity is seriously overcapacity. Instead of reducing production, China is increasing production – or in a downturn in the global economy and slowing demand. China has made the international market unstable.

Bloomberg News reported that the statement also specifically emphasized that all countries are suffering from "a sharp increase in unfair imports." China exported more crude steel than any other country in April.

What the statement said is indeed a fact. At a time when steel prices are sluggish and domestic demand is not satisfactory, Chinese steel mills will export surplus products to large-scale overseas exports. The Chinese government is busy pursuing mergers and acquisitions of state-owned steel companies in an attempt to reform the industry. In the view of foreign steelmakers, the Chinese government is continuing to maintain its unfair government support for domestic industries, which will extend the excess time.

According to Bloomberg, Helen Lau, an analyst at Argonaut Securities Asia in Hong Kong, said: "Every time a trade friction occurs, you can always hear this complaint. Although it is important that the Chinese steel industry is going downhill, its exports are increased because of domestic Demand is not strong enough, but at the same time, they still have export demand."

International partners can not only complain. They not only called on governments to solve the problem of global overcapacity, but also said that the World Trade Organization (WTO) should consider China's steel policy while considering whether China is a market economy.

Not only that, but some countries have begun to reduce China's imported steel products. The EU decided this month to extend the existing tariff on Chinese steel wire used for construction for five years. Mexico has strengthened taxation. The United States, the world's second-largest steel consumer, has also taken some actions. Steel manufacturing giants such as USSteelCorp. and Nucor Corp. filed complaints against imported steel products from China and four other countries, saying that the low prices of such products are not fair.

According to data released by the National Bureau of Statistics at the beginning of the year, China's crude steel output in 2014 reached 822.7 million tons, a record high, a slight increase of 0.9%. The share of the world has fallen from 49.7% in the previous year to 49.5%. In the first four months of this year, China's net export of steel was equivalent to 31.01 million tons of crude steel, a year-on-year increase of 42.5%.

According to customs data, in April, the country exported 8.54 million tons of steel, an increase of 840,000 tons, an increase of 10.9%; net exports of steel equivalent to crude steel 7.62 million tons, an increase of 880,000 tons, an increase of 13.1%.

(Article source: Wall Street sees)

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