CANACERO: Chinese overproduction a threat to steel industry, Posco ceo says

Steel companies around the world have been threatened by overproduction in China, which at 230 million tonnes represents about 36% of the total global production capacity.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

“The overproduction of steel products compared with global steel demand is worrying,” Posco ceo Chung Joon-Yang said last week at the 2nd Mexican Iron & Steel Conference (Canacero) in Cancún.

Statistics from the World Steel Assn for 2012, he explained, “show that the total production of crude steel is about 2.05 billion tonnes, but demand only reached 1.4 billion tonnes, so there is an overproduction of 640 million tonnes […] especially from China”.

Global steel capacity increased by 3.8% but steel consumption rose by only 3% between March and September this year, Joon-Yang noted.

To combat this problem, “the governments of steel-producing countries must eliminate direct or indirect subsidies, and let the market do its part considering quality, price, service and responsibility to the environment,” he concluded.

What to read next
European energy analysts’ “what if” questions have turned into “what now” questions in the wake of Russia’s stalled war efforts against Ukraine
Despite the metal being classed as “strategic” in the European Union’s proposed Critical Raw Materials Act (CRMA), questions remain about the future of magnesium supply in Europe, market participants have told Fastmarkets
The publication of Fastmarkets’ assessment of the Southeast Asia copper premium for Tuesday March 28 was delayed due to a scheduling error.
Recycling is increasingly being considered the best way to reduce carbon emissions from metals production, and huge investment in recycling facilities has been seen in recent years, with robust merger and acquisitions activity
As the world moves toward a shared goal of net-zero emissions, Claire Patel-Campbell talks to Outokumpu’s head of group sustainability, excellence and reliability about the place of the energy-intensive and high emissions ferro-chrome industry in a greener economy
Energy has been at the top of the agenda for the ferro-chrome market over the last couple of years, as prices fluctuate and access to steady supplies becomes more uncertain
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.