Chinese steel output rises relentlessly despite plant closures

Ahead of the S&P Global Platts Global Metals Awards in London, on May 16, The Barrel presents a special series of articles looking at the global metals trade. Paul Bartholomew and Jing Zhang take an in-depth look at China’s steel production in recent years, and the likely trajectory in 2019. Just a few years ago, market updates from major iron ore producers Rio Tinto and BHP routinely stated that they expected Chinese crude steel production to reach 1 billion metric tons by the end of the next decade. This sounded like an incredible amount of steel, particularly as China’s economic growth trajectory was heading south. Further, such a prediction seemed unrealistic given China’s steel output had retreated by 2.3% in 2015 to just under 804 million mt. For many Chinese government officials and steel analysts, the argument went something like this: steel consumption had peaked in 2014, Beijing was slashing steel capacity under its supply-side reform agenda, and the country was shifting toward a higher-value, consumption-driven economy based on cleaner technologies. In short, the era of massive industrial capacity build, so-called “ghost cities”, toxic assets, ballooning debt and excess that China was known for, was coming to an end. China had… continue reading

Continue reading Chinese steel output rises relentlessly despite plant closures. This article appeared first on CTRM Center.

Source: CTRM Center

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