This is significant news since the issue of Chinese steel
overcapacity is often cited as being the prime cause for the
current downtrend trend in global steel prices, fully in line
with our expectations and forecasts published in our latest
edition of "Global Steelmaking Production, Capacity and
Capex: A Five Year Market Outlook"
click here to see
a full sample of this study/database service.
In reaction to this, I have some personal thoughts
I'd like to share with you in this post.
a) Despite best intentions, I do not think that these announced
targets for cuts in capacity in 2016 and 2017 are going to be
fully realized in reality. Any seasoned observer of the Chinese
steel industry could tell you the level of skepticism there is
for capacity cut announcements based on historic precedence.
b) Even if they did, significant overcapacity will