According to US media reports, an analyst said on the 23rd that China's steel industry's severe overcapacity is unlikely to be alleviated in 2013, which may constrain steel prices and jeopardize the performance of Chinese steel companies.
According to the Dow Jones Newswires website on May 23, Platts Energy analyst Zhang Jing said during the European Conference on the steel market of the company that China's crude steel output in 2013 will reach about 750 million tons, meanwhile, With about 50 million tons of new capacity to be built, China's steel production capacity will rise to 950 million tons per year. She said that this will make China's excess capacity reach 200 million tons.
Ms. Zhang Jing said: “Any recovery in demand or price rebound during the rest of 2013 will easily lead to a sudden acceleration in production, which may constrain steel prices and jeopardize the performance of Chinese steel companies.†She said that the Chinese government may eventually close. It is considered to be 30% of excess capacity.
Susten Zimmerman, head of HSBC's Metals and Mining Research Department, pointed out at the meeting that China currently accounts for 46% of global steel production, and China's overcapacity is causing heavy steel prices in Europe and the world's steel industry. pressure".
Zimmerman said that China exported 56 million tons of steel products in 2012, of which 3 million tons were exported to Europe. Zhang Jing pointed out that due to the global market downturn, China's steel exports will drop slightly this year to about 50 million tons.
According to the general manager of the Shanghai Representative Office of Zhonglian Property Co., Ltd., overcapacity is the main reason for the low steel prices in China. Since 2012, the growth rate of China's steel demand has slowed down to a single digit. He said: "In April and May 2013, 70% of China's steel companies lost money."
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