Steel market in a new round of recovery

China’s biggest advantage is that the size of the iron and steel production. Fierce competition between Chinese steel producers, they had to squeeze profits, China’s huge steel exports to reduce prices forcing foreign competitors to lower prices, caused numerous complaints from Seoul to South Africa, which will herald the beginning of a trade dispute.

According to the China iron and steel association, according to this year the domestic steel production up to half of the global total, exports more than 80 million tons, the highest ever.

Has aggravated regional trade tensions. Japanese prime minister shinzo Abe, U.S. President barack Obama this week to meet with Chinese President xi jinping in Beijing.

As China’s economic growth slowed to 20 years, there has never been low and Chinese steelmakers expanding exports abroad.

Panzhihua iron and steel group import and export trade manager Luo Yongdong said, “next year will continue to maintain export trend. Therefore, trade disputes will intensify.” Panzhihua group is the anshan subordinate units, one of the largest steel producer in China.

Hebei iron and steel group, tangshan branch, said this week will start motor car exports to Latin American countries for the first time. At the same time, xuancheng branch on November 7, hard wire steel exports to Japan for the first time.

Tokyo Steel company (Tokyo Steel Manufacturing), general manager of Kiyoshi Imamura believes that China’s huge Steel exports will amount to 100 million tons a year, equivalent to Japan, the world’s second largest Steel producer) calendar year export amount.

Kobe Steel company (Kobe Steel) with South Korea’s Posco company (Posco) complained such as a flood of Chinese black metal for their market share. China’s steel had piled up at ports in India and Africa, so that local producers have to to seek their own government intervention.

China’s steel exports to the United States, the United States steel imports rose 50% in September. And exported to Taiwan and India by, rose more than fourfold.

Analysts believe that, in the southeast Asian market, China’s steel cost, enables its to ultra-low prices to sell some of these steel varieties; South Korea, its price is low 40-50 dollars/tons, $100 / ton lower than Japan.

The analysts believe that this is not just because of low labor costs, China’s biggest advantage is that the size of the iron and steel production. Fierce competition between Chinese steel producers, they had to squeeze profits, lower the price.