Expected cut in Chinese steel output 'not enough' to tackle oversupply

A fall in Chinese steel output of 23 million tonnes next year will have little impact on the country’s bloated steel sector, with many participants arguing for reductions at least ten times that level to take effect.


Li Xinchuang, deputy secretary-general of China’s Iron & Steel Assn (Cisa) said on Wednesday November 18 that there were no “bright spots” to be seen in the struggling sector and that output would fall by 3% from 2015 levels to 783 million tonnes in 2016.
Spot steel prices remain at or close to record lows as slower economic growth has seen demand contract in the face of comparatively high production levels from mills battling mounting losses.

As the country’s steelmakers seek to...

Published

Veronica Qin

November 19, 2015

09:47 GMT

Shanghai