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Chinese Steel Weekly-20160321

 

1. With the Communication "Steel: Preserving sustainable jobs and growth in Europe" released by the European Commission, the EU will also propose trade defense and a prior surveillance system on steel products in addition to 37 anti-dumping and anti-subsidy measures in place on steel import.

MPI's comments: The global steel industry is confronted with difficulty due to weak economic recovery and market demand. Competitive position of EU’s steel industry has deteriorated in recent years, which can be determined as the key reason leading to difficulty of the same. The global issue requires a common response through dialogue and cooperation instead of implementation of trade protection, which only imposes a further impact on international trade system.

2. According to the statement released by Mr. Zhang Jiehui, the Vice Governor of Hebei Province, iron making capacity in Hebei has already been removed by 33.91 million tons, and steel making capacity removed by 41.06 million tons, refer to production capacity of two An Steel.

MPI's comments: Hebei Province, as a power of steel production, is the focus of overcapacity elimination of Chinese steel industry. Besides overcapacity elimination complying with varied standards covering environmental protection, technical level and quality, Hebei should consider establishment of new industries related to the steel sector under support of government

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