新闻中心
NEWS CENTER

NEWS CENTER

Chinese steel suffers black May in US, Europe

  • Categories:Company News
  • Author:
  • Origin:
  • Time of issue:2020-06-28 15:44
  • Views:

(Summary description)There is a Chinese idiom, "it never rains but it pours", to describe the plight of China's steel industry since May.

Chinese steel suffers black May in US, Europe

(Summary description)There is a Chinese idiom, "it never rains but it pours", to describe the plight of China's steel industry since May.

  • Categories:Company News
  • Author:
  • Origin:
  • Time of issue:2020-06-28 15:44
  • Views:
Information

There is a Chinese idiom, "it never rains but it pours", to describe the plight of China's steel industry since May.

Last week, European Union regulators issued a preliminary report on the dumping of silicon-oriented electrical steel made in China and other countries in the EU market. Based on the preliminary finding, Chinese companies, including Baosteel, will be subject to provisional anti-dumping duties of 28.7 percent for six months.

A few days earlier, US media reported that some US steel executives had complained that Chinese steel was flooding in at "unfair prices", which had squeezed their market space. The executives called for barriers to "made in China" steel. The demand is believed to have a high chance of winning official US support.

In fact, steel is not the only Chinese product flooding into the U.S. market recently. China's trade surplus with the United States expanded 29.8 percent in the first four months of this year, as exports to the United States rose 9.2 percent and imports from the United States fell 11.5 percent, according to Chinese customs data.

The main reason for the widening trade deficit is the continuous appreciation of the U.S. dollar. But the US took the opportunity to hold on to steel, making the latter a "sucker".

China's exports to Europe fell in The first four months of this year as the euro plunged. But since the EU opened the case in August last year, its anti-dumping investigation dates back even further, adding to the woes of the already struggling Chinese steel market.

"We are opposed to the U.S. and other countries taking various measures against Chinese steel products on the grounds that Chinese steel exports (2342,-19.00,-0.80 percent) are growing relatively fast." This is what Commerce Ministry spokesman Shen Danyang told China News Service.

Shen danyang believes that the rapid growth of China's steel exports should be first attributed to the large market demand in Europe and the United States, followed by the price advantage of Chinese products. Europe and the US, however, believe that China's domestic steel industry overcapacity is the main cause of the dumping.

Regardless of the above logical right or wrong, overcapacity is indeed a big problem plaguing China's steel industry. It is estimated that in 2014, China's steel capacity utilization rate was less than 70%, usually under 75% capacity utilization is called overcapacity.

This can not help but remind people of a few years ago once made a fuss of China and the United States, China and Europe photovoltaic friction. China's photovoltaic industry also suffered from significant overcapacity due to heavy production before the financial crisis. Under the pressure, individual enterprises to seize the overseas market and vicious bidding, for the United States and Europe successively on the product of high frequency, large-scale anti-dumping provided a justification. Affected by this, the photovoltaic industry weakened.

To avoid a repeat of the photovoltaic experience, Chinese officials have focused on shrinking and digesting steel capacity. From 2010 to 2014, China eliminated 90 million tons of steelmaking capacity, which to some extent alleviated the domestic overcapacity problem. On this basis, the Ministry of Industry and Information Technology said recently that it will further reduce steel production capacity by 80 million tons in three years.

At the same time, The Chinese authorities also began to focus on guiding the steel industry to accelerate the pace of "going out". The State Council issued a document on January 16 to promote international cooperation in production capacity and equipment manufacturing, and listed steel and non-ferrous metals as key industries, which is believed to be due to this consideration. Under the favorable policy, the steel industry's foreign investment cooperation is expected to accelerate, compared with a simple mass export, foreign investment is expected to be more effective to avoid trade barriers.

FEEDBACK

WRITE A MESSAGE TO US

Username used for comment:
Feedback
Description:
验证码

Release News

Previous page
1

TIANJIN HUILITONG STEEL TUBE CO., LTD.

Add:Beihuan Industry Area Jinghai Tianjin China
TEL:022-68697718  68695000
E-mail:huilitong@huilitong.com.cn

TIANJIN HESHENG STEEL PIPE CO., LTD.

Add: No. 9, Haihe River, Daqiuzhuang Town, Jinghai District, Tianjin
Tel:022-68696777  68583661 

天津惠利通钢管有限公司

Sweep

Go to the mobile website

Copyright © 2020  TIANJIN HUILITONG STEEL TUBE CO., LTD. All Right Reserved    津ICP备19006903号​   Powered by www.300.cn