China can reduce steel production to 500 million tons per year

China can

02.01.2018 17:00

Steel production in China could drop to 500 million tons per year, said Cheng Dejong, head of the largest Chinese metals company Baowu Group. According to him, such a drop in output might occur within the next 20 years.

Cheng Dejong did not name the reasons why Chinese steel industry http://metalscraps.co.uk/scrap-steel-b587.html smelting in the current year is projected at 840 million tons.

However, China can really significantly reduce the demand for steel products due to the rejection of the policy of stimulating the economy through large-scale investments in infrastructure construction, real estate and renewal of fixed assets of state enterprises, as well as in the case of a significant reduction in Chinese exports of manufactured goods.

As previously noted by Cheng Dejong, Baowu plans a new takeover, seeking to increase its share in Chinese steel production to 20% compared to less than 8% at present. According to him, the corporation, together with the US investment company W.L. Ross & Co, Chinese China Merchants Finance Holding Co. and the US-China U.S.-China Green Fund has set up a special fund to finance the restructuring of the national steel industry by closing excess capacity, liquidating zombie companies, accelerating the concentration of production processes and supporting international cooperation. The capital of the fund will be 40-80 billion yuan ($ 6.1-12.2 billion).



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