In December 2015, the volume of steel production in China has decreased
24 January 2016
China's National Bureau of Statistics provided data for December 2015. They give an idea of the amount of steel produced. During this period, the volume reached the level of 64,370,000. Tons. This is lower than the December 2014 results by 5.2%. As a whole for 2015 in China was produced 803.83. Compared to the year 2014 the number of below 2.3%. Since the 90s this is the first case where the smelting performance go down. Experts believe that the decline in China's iron and steel sector will be observed in 2016. GDP growth reached 6.9% last year. Since 1990, it is the weakest result. In the short term this rate expected to continue to go down. Especially strong changes will occur in industry and the construction industry in China.
China Association CISApredostavila own data. According to them leading steel corporation of China 11mesyachny period suffered losses. In general, they have made 53.1 billion. Yuan, equivalent to 8.07 billion. USD. Accordingly, it can be assumed that the excess power output will continue to malfunction. This is a necessary step to establish a balance between supply and demand. However, the steel product cost is also stabilized. Citigroup Company representatives believe that in 2016 Chinese steel production will continue to decline. In comparison with 2015 it will be 2.6% to reach about 783 million. Tons.
During the period 11mesyachny steel consumption in China also showed a decline. It reached 5.5% compared to the same period in 2014. Given the figures, domestic companies have begun to expand the volume of deliveries abroad. In 2015, they reached 112.42 million. Tons. This figure was 19.9% higher than in 2014 year. Representatives Cheeho believe that the Chinese rental demand will continue to decline in 2016. At the same time consumption is reduced more rapidly than production. Because export volumes start to grow again.
Some support steel sector is expected due to the devaluation of the yuan. We consider the ratio of 7 yuan = 1 USDv 2016. With such a ratio of the external supply of steel from China could rise to 134 million. Tons. The output of China's metallurgical plants will decrease to 778 million. Tons. In April 2016 the conference is scheduled. It will become clear question regarding the subsidization of unprofitable enterprises PRC authorities.
