October 31, the British media reported that according to the steel industry executives’ said, the global factory surplus posed a serious threat to the healthy operation of the industry. Although recently the steel price rebound, China is also reducing the size of the industry, and many regions have taken measures to limit imports, but all this did not calm the people’s concerns.
With the slowdown of China’s economic growth, China’s steel companies export as a pressure reducing valve. From 2008 to 2015, China’s exports more than doubled to 112 million tons, surpassing the overall of U.S. consumption. However, the current level is declining now.
According to OECD estimates, the global steel production of 1.67 billion tons last year, but there are still 737 million tons of excess capacity despite.
However, OECD said that the global oversupply will drop to 700 million tons this year due to increased demand. The Chinese said that more than two-thirds of its work has been completed in achieving the goal of a permanent reduction of 150 million tons of steel capacity.