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China to prevent illegal steel plants from returning to the market-The 19th China (Guangzhou) Int’l Spring Industry Exhibition
10/26/2017 Spring Industry Exhibition-Spring expo |
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Bloomberg reported that China will prevent shuttered or illegal steel plants from returning to the market, according to an official at the nation’s lead economic planning body, signaling a commitment to a campaign by the world’s top producer that has helped to raise prices. Mr Ning Jizhe, vice chairman of the National Development and Reform Commission told reporters during the 19th Communist Party Congress that the nation will stick to its capacity-cuts mission this year. Separately, NDRC Chairman He Lifeng said cuts to steel and coal capacity had resulted in more than 1.1 million workers being “reemployed” after job cuts.
China’s been ordering illegal steel mills to close, both to reduce overcapacity and to clean up the environment, and officials plan a battery of further output cuts at remaining plants over the winter in key production centers. Benchmark steel prices have advanced this year, with spot reinforcement bar gaining last month to the highest level since 2011. The nationwide drive has also triggered a drop-off in exports from China, easing the pressure on producers elsewhere.
Mr Atilla Widnell head of market intelligence at Mysteel Singapore Pte, told Bloomberg that “State and local governments have taken supply-side reforms of overcapacity in the domestic steel industry extremely seriously.” The impact is material both to the tightening of the domestic balance, and to markets outside China due to the sheer volume the country exports, according to Widnell.
Steel production sank from a record in September, hitting the lowest in at least six months, as the campaign to cut excess capacity and the anti-pollution drive touted by President Xi Jinping in his policy address to the congress made their mark. Output was 71.83 million metric tonnes in September from 74.59 million tonnes in August. At the same time exports have been dropping, slumping to 5.1 million tonnes last month, the lowest total since February 2014.
Imports of Chinese steel into the US are expected to decline in 2018, According to Lourenco Goncalves head of Cleveland-Cliffs Inc, China is finally doing what they said they would do.
Banks are trying to figure out how severe the rollback in steel production will be, with Macquarie Group Ltd saying that the coming months will be all about the winter cuts. It estimated that 95 million tons of capacity will be affected between November and March, and that equated to about 32 million tons of lost crude steel production, according to a recent report.
-The 19th China (Guangzhou) Int’l Spring
Industry Exhibition
-Spring Industry Exhibition, spring expo,
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expo, steel spring exhibition, steel spring expo
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