Hmm-make 900 million metric tons-export over 100 million tons-dump steel lose $59 Billion!!
Just stop dumping below their cost to produce and focus on making a profit......oh, sorry profit is not part of being a State Owned Industry. When they joined the WTO to gain access to the Worlds Markets they pledged NOT to dump/predatory price.....they lied...no surprise here! Americans need to insist that their political leaders stop the Trade Cheating-NOW!
From Steel Business Briefing
Chinese steel industry losing Yuan 400/mt: ANZ
Chinese mills have lost on average Yuan 200 for every metric ton produced in the year-to-date and this negative margin now stands at more than Yuan 400/mt, according to a research note from ANZ bank.
In its commodity insight, the bank said margins were coming under increased pressure as demand declines. Chinese domestic demand had peaked in 2014, a significant revision from the bank's previous forecast consumption would reach its zenith in 2020.
However, ANZ suggested production was still “higher than required,” as the companies sought to minimise marginal costs by benefiting from economies of scale. With tight credit conditions limiting capital, mills have been restricting inventory levels, holding stock at a lower rate than usual and diverting their production to export markets.
“We estimate that Chinese steel exports will rise 14% in 2015 to a total of 107 million mt (equivalent to 14% of total steel output),” ANZ said, noting this equated to the entire production of Japan -- the world’s second-largest steel producing country.
Despite a large swathe of Chinese mills losing money (see related article), ANZ suggested the spread between Chinese domestic prices and international markets would tighten. “We think this will quickly close with impending anti-dumping duties being proposed by key steel importers,” the research note said.
-- Peter Brennan