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  > China Metallurgical Planning Net > Chinese Steel Weekly  
 
Chinese Steel Weekly-20160530
 
 
1. European Confederation of Iron and Steel Industries submitted one letter to leadership of G7 recently, which stated that G7 should stop export of cheap Chinese steel to further protect steel producers worldwide from loss.The Association of European Enterprises has also sent a letter to leaders of UK, France, Germany, Italy and the European Union calling for rejection of Chinese market economy.
 
 
 
MPI's comments: Only 7.6% of total Chinese steel export were delivered to the European countries, while only 14% of total European steel import came from China. Over capacity of the steel industry is a common problem caused by weak recovery of world economy and shrinking demand especially in developed economies. The whole world should work together to find out a solution instead of blame Chinese market only.
 
 
 
 
 
2. Chinese steel daily production reached the historical high in April 2016. Both operating and utilization rate of Blast Furnace have increased week-on-week since February 2016. And price of re-bar futures rose significantly. Some closed steel companies have restarted their production.
 
 
 
MPI's comments: Whether re-open or price rise, it is cannot be a long-term story. Since March 2016, steel output and price rose complying with hot season of sales, execution of construction projects and rise of re-bar futures price. But the growth will not last for long term due to oversupply has not been changed.
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