China's Steel Production Focuses On Meeting Domestic Demand

China News Service, Beijing, November 15 (Reporter Liu Yuying) The relevant person in charge of China's Ministry of Industry and Information Technology said on the 15th that China's steel is positioned to mainly meet domestic demand in the long term; it is unfounded to believe that China's steel overcapacity has led to trade disputes. , nor is it objective.
Data shows that China's crude steel output from January to September this year was 795 million tons, a year-on-year increase of 1.7%. The full-year crude steel output is expected to be basically the same year-on-year. From the perspective of consumption, although the construction steel industry has experienced a slight decline due to the downturn in real estate, steel consumption in the manufacturing industry has maintained growth, and China's steel consumption has basically remained stable.
The person in charge said that China Steel's long-term positioning is mainly to meet domestic demand. For a long time, China's steel export proportion has remained at around 5%, which is far lower than other steel producing countries such as Japan and South Korea. The growth of China's steel exports is the result of enterprises actively participating in international competition in accordance with market-oriented principles. China does not encourage steel exports, and the growth of steel exports by Chinese companies is a reflection of their market competitiveness.
In addition, the decline in steel prices is a global phenomenon and not unique to China. Currently, global economic growth is sluggish, inflation is high in Western countries, global steel demand has recovered less than expected, and downward pressure on prices in major markets is increasing.
According to data from the General Administration of Customs, from January to September, the average export price of China's steel products was US$985.7/ton, a year-on-year decrease of 32.2%, but the price was not significantly lower than the market price of other countries. For example, taking hot-rolled coils as an example, the price of hot-rolled coils in the United States in September was US$786.5, down 38.34% from the year's high of US$1,275.5 (April); the price of hot-rolled coils in the European Union in September was US$690.7, down from the year's high $934 (April) down 26.05%.
"China's steel exports follow the rules of the World Trade Organization and follow the principles of marketization and rule of law. It is a normal trade behavior between enterprises. Some opinions that China's overcapacity leads to trade disputes are unfounded and unobjective." The person in charge said .
Source: China News Network