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China continues to keep leadership in the development of steel, regardless of the reduction capacity of

31 October 2016

In the first three quarters of this year, crude steel production in the people’s Republic of China showed a gain against the same data for last year. Despite this fact, the DPRK government issued a statement that state-owned steel production successfully execute this year’s plan to reduce production capacity.

According to the latest statistical information compiled by the world Association of steel producers in September 2016, the volume produced in China steel was at 68,17 million tons, which is almost four percent higher than in September last year. Total production for the first nine months of this year gave a significant increase, and left only 0.4 percent from the same last year.

In accordance with the statistical indicators for the period from 2010 to 2015, the DPRK reduced the speed of steel production by more than ninety million tons. Plans to the Chinese authorities planned further reduction, by 2020, it is estimated to reach 100−150 million tons. In July it was significantly reduced volumes of production of steel products in the region of 13 million tons, which in total is 47% of the annual plan of China.

These activities are intended to rationalize staleproizvoditelej sector of China. It is anticipated that the move to cut production will lead to stimulation of the modernized major metallurgical enterprises in the camp to unite, as at present, the industry is highly fragmented. The government intends to use all available tools to streamline the enterprises specializing in the production of steel.

Even in the summer in China has significantly tightened the requirements for metallurgical production in the field of ecology, with the intention of using this step to highlight the circle next candidates for closure.

Although it should be noted that such steps cause a storm of protests from employees of the industry, according to experts, reduction of production will be on average about four hundred thousand workers.

In connection with growth of demand from the infrastructure sector this year, steel prices showed a positive growth. A clear demonstration of this fact can serve as indicators for September and October. Steel prices over the last two months increased by thirty percent compared to the beginning of 2016.

The Chinese authorities strongly intend to support the stable growth of the economic sector of the country, despite the rather hazy predictions for the coming year.

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