Chinese Steelmakers Lost US$15.5 Billion in 2015
04/08/2016 - China’s steelmakers made a lot of steel in 2015, but they reportedly didn’t make any money in return: they collectively lost US$15.5 billion in 2015, according to Xinhua, China’s official news agency.
Steelmakers found themselves in a “severe winter” last year due to global overcapacity and falling prices, Liu Zhenjiang, secretary general of the China Iron and Steel Association, said at an industry meeting, according to the news service.
Xinhua reported that association members saw their combined return on sales fall into the negative in 2015, declining from an average of 0.44 percent in 201-2014 and between 2 to 3 percent in 2008-2015.
China has said it plans to cut 100 million to 150 million metric tons of capacity over the next five years.
And on Friday, an executive with Maanshan Iron & Steel told the Reuters news service that it would lop 20 percent of its steelmaking capacity over the next three years, but would attempt to expand its foreign business.
“Steel mills have to become more international,” general manager Qian Haifan told Reuters.
Xinhua reported that association members saw their combined return on sales fall into the negative in 2015, declining from an average of 0.44 percent in 201-2014 and between 2 to 3 percent in 2008-2015.
China has said it plans to cut 100 million to 150 million metric tons of capacity over the next five years.
And on Friday, an executive with Maanshan Iron & Steel told the Reuters news service that it would lop 20 percent of its steelmaking capacity over the next three years, but would attempt to expand its foreign business.
“Steel mills have to become more international,” general manager Qian Haifan told Reuters.
