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China Iron and Steel Association: Our Steelmakers Are Hurting, Too
01/18/2016 - Overcapacity and falling domestic demand are impacting the Chinese steel industry -- the country’s major steel producers lost US$8.07 billion from January to November 2015, reports the Reuters news service.
Citing numbers from the China Iron and Steel Association, Reuters said steel output in China fell 2.2 percent to 738.4 million metric tons in the first 11 months of 2015, but apparent steel demand fell 5.5 percent to 645 million metric tons during the same period.
China's total annual crude steel capacity is now 1.2 billion metric tons, Reuters said, based on comments from association chairman Zhang Guangning.
In a speech at the association’s annual conference, Zhang said about a third of the country's total capacity is now idle, and China still has yet to establish a mechanism allowing loss-making steel enterprises to exit the market, Reuters said.
"Some enterprises want to exit, but an exit route has not been opened up … and some local governments continue to urge steel firms to produce in the interests of local economic development and social stability," said Zhang.
China's total annual crude steel capacity is now 1.2 billion metric tons, Reuters said, based on comments from association chairman Zhang Guangning.
In a speech at the association’s annual conference, Zhang said about a third of the country's total capacity is now idle, and China still has yet to establish a mechanism allowing loss-making steel enterprises to exit the market, Reuters said.
"Some enterprises want to exit, but an exit route has not been opened up … and some local governments continue to urge steel firms to produce in the interests of local economic development and social stability," said Zhang.
