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Chinese Steel Weekly-20160111

 

1. According to the statistics released by General Administration of Customs of the PRC, steel export from China in December 2015 was 10.66 million tons increased by 1.05 million tons comparing with that in November, with 4.8% growth year-on-year. And steel export from China was 112.4 million tons totally from January to December increased by 19.9% year-on-year.

MPI's comments: Steel export from China broke 100 million tons for the first time representing strong competitiveness of Chinese steel products in the international market. Chinese steel industry will impose fundamental influence on the global steel industry over the coming years. Overseas steel industry should try to improve competitiveness instead of carry out trade protection.

2. Mr. Li Pumin, secretary general of National Development and Reform Commission stated in the Press Conference of the State Council Information Office of the PRC that steel and coal industries will be highlighted for structural reform of supply front in the next stage expecting to make a breakthrough on overcapacity elimination. The central government will set up a special fund subsidizing local governments and steel companies for overcapacity elimination, which will be mainly used for staff settlement.

MPI's comments: Demand stimulation is no longer a driving force of steel supply under new normal of national economy. We have to strengthen the structural reform of supply front to solve serious overcapacity of the steel industry by means of restructuring, capacity reduction etc. It is a good way to release a special fund for staff settlement, which can be deemed as a core issue of overcapacity elimination.

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