The iron and steel trade is fiercely competitive
TIME:2017/7/4 17:34:48
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    It is reported that in April 27th, the financial times, China's iron and steel industry is the world's largest, with 2016 of crude steel production amounted to 8.08 tons, half of the global crude steel production. So far, about 90% of China's steel output has been absorbed by the domestic market, but the peak domestic consumption is 2013. As China's economic growth slows and infrastructure and real estate construction activities are saturated, more steel will flow into the international market.

    Reported that, in the west, China's steel influx into the international market has become a political issue. Last week, President Donald Trump announced the results of a survey of "national security" may, on the basis of a 1962 law (the ability to endanger their own safety for the U.S. government to deal with the import restrictions), to impose tariffs on imported steel overall. 2016, the European Union and China agreed to establish bilateral platforms for monitoring bilateral trade in iron and steel by the Brussels iron and steel workers and germany". In the past few years, the United States, Europe, Mexico and other countries have filed anti-dumping complaints against WTO. According to the terms of China's accession to the WTO, it will be more difficult for China's anti-dumping cases after the document 2016.

    As steel producers slow down demand for steel, competition for steel sales to other parts of the world is becoming increasingly important, the financial times reported.  For example, the North American Free Trade Agreement, the three signatories - the United States, Canada and Mexico - did not stop the growth of steel production, while imports accounted for 2015 of the share of consumption, up from 15% of 2011 to 21%. At present, the North American Free Trade Zone iron and steel production capacity utilization is lower than the world average. On the other hand, Europe's steel output is below 2008. Weak domestic demand made Europe a net exporter of steel between 2009 and 2014.

    Another factor is that global steel prices are under pressure because all categories of steel are in excess supply, the report said. In the past, Chinese enterprises mainly exported low value-added steel products, and the mature economic construction market slowed down, which made the Western iron and steel enterprises produce higher steel value. However, the Chinese government encourages state-owned enterprises to rise to the high end of the value chain, in China's over construction steel. This has led to some stainless steel or galvanized steel Chinese state-owned enterprises producing more of the car must be with ArcelorMittal Steel Group and other Western rail collision. Not long ago, ArcelorMittal announced in 2017 plans to shut down part of the production capacity in the United States, and in the global scope (including Chinese) of galvanized steel and automotive steel production capacity.