Steel overcapacity is a global problem

Steel overcapacity this global issue and should not be attributed to China
China Prepainted Galvanized Steel Sheet production capacity to show positive results
9, the National Development and Reform Commission, China's steel production capacity to some progress in responding to public opinion, Development and Reform Commission Industry Department inspector Shannon said that China has taken firm and effective measures to resolve excess capacity and effectiveness is gradually emerging. Anti-dumping investigations against Chinese steel products in some countries initiated, Shannon believes that steel-producing countries should work together, the introduction of positive initiatives to resolve excess capacity and should not be steel overcapacity this global problem blamed China.
Steel overcapacity is a global problem, Chinese production capacity to the task is still arduous
Since the international financial crisis, the world economic recovery is weak, uncertain and unstable factors have increased the global supply and demand relations have undergone major changes. Shannon considered in this context, overcapacity has become a global issue, the steel industry overcapacity problem is particularly prominent. China and the global steel industry faces difficulties as weak market demand, low capacity utilization.
"Our main market measures, economic instruments and the rule of law approach to resolve the steel overcapacity, proved to be effective." Shannon cite any figures, "he said the first half of this year, China's steel production fell 1.1% price rise, iron and steel industry in March achieve profitability in the month, from April to achieve total losses. "
Shannon introduced in the global overcapacity in the background, capacity utilization in China in recent years was higher than the global average, also higher than the United States, Europe and other countries and regions. According to World Steel Association data, 2014 global crude steel capacity utilization was 73.4%, China's crude steel capacity utilization was 73.6%; in 2015 the global capacity utilization was 69.7%, according to 2014 data estimated annual capacity of 2015 I was able to take advantage of domestic rate of 71.2%.
According to recent steel industry coal teleconference to resolve excess capacity and turnaround development of inter-ministerial joint conference held at the end of July this year, China's steel industry to 47% of annual production capacity to complete the task. The meeting pointed out to the progress of the overall capacity is not ideal, the second half of steel production capacity to the task is still arduous.
Shannon said the next step to continue to focus still firmly production capacity, strict control of new capacity at the same time, to properly resolve the debt problems of iron and steel enterprises, relevant departments are studying the development of specific measures for implementation, by promoting mergers restructuring, debt restructuring, bankruptcy and other channels, according to the law the disposal of a good production capacity out of the debt problems of companies involved, according to local conditions to promote the zombies will exit the business. It is reported that in mid-August from the inter-ministerial meeting will go to the country to carry out a comprehensive inspection of the production work.
China does not encourage steel exports to Europe and other trade protection will not help solve the global steel industry issues
In May this year, the United States formally Baosteel, Shougang, Wuhan Iron and Steel, Anshan Iron and Steel and other 40 Chinese companies launched the "337 investigation", said these companies in the United States sold some steel products unfair competition. At the same time from late April to late May, a number of countries, including the European Union, Chile, United States, Vietnam, Australia, India, Colombia, Canada and Malaysia to China's iron and steel product anti-dumping investigations or making anti-dumping ruling.
"Should not be steel overcapacity this global problem blamed China, and trade protection, restrictions fair market competition and other wrongdoing." Shannon believes that since 2000, the United States in the steel sector of steel products in China launched a total of 40 They trade remedy investigations, raise taxes, to suppress Chinese steel products, most of which is still in effect. In the "double reverse" measures on the basis of this and start the "337", is the United States to upgrade Chinese steel products "double reverse" survey, belonging repeat relief, abuse of trade restrictions, is the world's steel normal trade order serious damage.
Shannon introduced from China's national conditions, China's steel exports does not encourage, but rather a set of practical measures to control steel exports. On the one hand, for some steel products imposed export tariffs to reduce exports, for example, ferrosilicon export tariffs imposed to 25%. On the other hand, the initiative to lower steel export tax rebate rate, currently all steel products export tax rebate rate of less than 17 per cent VAT rate, some steel products shall not be refunded. According to WTO rules, China's tax rebate rate can not perform more than 17% of steel products. "The fact that international trade in steel products is essentially a market behavior, is derived from the importing country needs is to choose from consumers considering the product cost and other factors." Shannon said.
Shannon said that from a global perspective, China's steel enterprises have a very strong competitive edge, iron and steel products have a good reputation in international trade, and cost-effective, a number of steel products has become highly complementary relationship between local production and importing countries to promote local economic development, but also to local downstream users and consumers real benefits, it should be comprehensive, objective and balanced view on trade in steel products. "Trade protection measures will not help solve development issues in the global steel industry, fundamentally, it will only cause further impact on international trade order."



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