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Chinese Steel Weekly-20160613


1. Mr. Liu Xiaoming, Chinese ambassador to the United Kingdom stated recently that there is nothing with Chinese steel export and difficulty of British steel industry. Both countries should work together solving over capacity of the steel industry, which has already been deemed as a global issue.


MPI's comments: In 2015, only 11% of total steel import of UK came from Chinese market. UK needs to import steel products from other countries even not from China. In comparison with UK, China is confronted with more difficult task on over capacity elimination of the steel and coal industry. Chinese government has already formulated varied measures covering fiscal & taxation, financing, social security etc to remove over capacity according to the fixed schedule, which has already gained achievements preliminarily. Over capacity elimination should be undertaken by the steel industry worldwide.



2. According to the statement released by the National Bureau of Statistics, steel production increased in the first five months of 2016, and some steel companies reopened the production.


MPI's comments: It is needed to be highlighted that steel production has increased and some companies reopened the production in compliance with price rise in April and May 2016. We have to promote structural reform of the supply-front in order to fulfill the task of over capacity elimination.

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