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China's Steel Industry Fragmentation Worsening - Mr Gan Yong of CSM

Steel News - Published on Wed, 16 Oct 2019

Image Source: Reuters
Reuters reported that Chinese Society for Metals president Mr Gan Yong said that China’s steel sector fragmentation is worsening as unplanned new capacity at small mills undermining government efforts to restructure and merge companies in the huge industry. Mr Gan Yong said the trend is for less rather than more consolidation, saying unplanned capacity expansion at smaller mills was coming online while their big mostly state-owened rivals were struggling to do the same as quickly. Mr Gan told Reuters that “There are some places using steel as a key contributor to economic growth as demand is robust adding some regions in China were not managing overcapacity controls very strictly."

Mr Gan warned of growing competition in high-end products too. He said that “There are signs of overcapacity in stainless steel, electrical steel and auto sheet steel."

The Ministry of Industry and Information Technology recently warned that the sector is still having trouble with increasing illegal capacity, including new mills not approved by the government and those that were supposed to be shut in capacity swaps.

Beijing has been trying to consolidate the world’s largest steel market to curb excess capacity and pollution and has set a goal for its top 10 steelmakers to own 60% of

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Posted By : Amom Remju on Wed, 16 Oct 2019
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