Steel Executive Expects China Production to Decline
11/12/2015 - Chinese steel production probably will fall 10 percent within the next decade, according to Shen Wenrong, chairman of Shagang Group, China’s largest privately owned steelmaker.
In an interview with The Australian newspaper, Wenrong said China’s steel production currently is around 830 million metric tons annually, but it really should be somewhere between 600 million to 700 million metric tons.
“I think this level of production would be healthy. Even if it drops to 500 million (metric tons), it is still healthy,” he told the newspaper.
Wenrong also said he doubts forecasts from iron ore miners holding that Chinese production will come close to, or exceed, 1 billion metric tons by 2030.
“It is impossible for China’s steel production to exceed 1 billion(metric tons),” he said.
According to the BloombergBusiness news service, China’s steel production declined in October on a year-over-year basis on account of lower domestic demand, falling prices and rising industry losses.
Citing National Bureau of Statistics data, the country’s mills produced 66.12 million metric tons of crude steel, 3.1 percent less than in October 2014. Supply for the first 10 months was 675.1 million tons, 2.2 percent less than the same period in 2014, the news service said.
In October, Shanghai Baosteel Group Corp. chairman Xu Lejiang forecast that China’s steel production might eventually shrink 20 percent, Bloomberg said.
“I think this level of production would be healthy. Even if it drops to 500 million (metric tons), it is still healthy,” he told the newspaper.
Wenrong also said he doubts forecasts from iron ore miners holding that Chinese production will come close to, or exceed, 1 billion metric tons by 2030.
“It is impossible for China’s steel production to exceed 1 billion(metric tons),” he said.
According to the BloombergBusiness news service, China’s steel production declined in October on a year-over-year basis on account of lower domestic demand, falling prices and rising industry losses.
Citing National Bureau of Statistics data, the country’s mills produced 66.12 million metric tons of crude steel, 3.1 percent less than in October 2014. Supply for the first 10 months was 675.1 million tons, 2.2 percent less than the same period in 2014, the news service said.
In October, Shanghai Baosteel Group Corp. chairman Xu Lejiang forecast that China’s steel production might eventually shrink 20 percent, Bloomberg said.
