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  > China Metallurgical Planning Net > Chinese Steel Weekly  
 
Chinese Steel Weekly-20160418
 
1. Mr. Zhang Ji, Minister Assistant of the Ministry of Commerce of the PRC told Xinhua News Agency in Brussels several days ago, not only determination and measures taken by Chinese government but also achievements gained are leading the world in overcapacity elimination.
 
MPI's comments: China has already eliminated 90 million tons backward capacity within a few years, and will continue to remove 100 to 150 million tons crude steel capacity in the coming five years, which was only 10 million tons less than total crude steel production of the European Union. It usually takes 25 to 35 years for Western countries to remove 100 million tons capacity. Some overseas media only emphasized that Chinese steel output accounted for about 50% of total output in the world, but ignored that China itself consumed about 46% of world output.
 
 
 
2. According to the price in the second ten-days of April released by Sha Steel, price of many varieties increased by 550 yuan/t to 3000 yuan/t with 21% growth, which was much more higher than the growth of 50-100 yuan in the last ten-days.
 
MPI's comments: Although macro economy showing a better condition, there is no obvious expansion of steel demand of downstream industries. The situation of oversupply has kept the same. The structural adjustment and upgrading of Chinese steel industry only can be realized by promotion of reform of supply front. Therefore significant growth of steel price cannot be maintained for long-term.
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