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Ice Age has arriveed for global steel - Angang Steel

Add Time:2016-04-01 20:05:00 Clicks:
Sydney Morning Herald reported that the crisis engulfing the global steel industry is so severe that one of China's top producers has warned a new Ice Age has set in as mills confront overcapacity and rising competition that threaten their survival. Steel giant Angang Steel, after posting a net loss of CNY 4.59 billion for 2015, said “In 2015, China experienced a slowdown in economic growth and excess steel capacity, which caused the domestic and overseas steel industry to enter into an Ice Age.”

It said “There are severe challenges, fierce competition and difficult survival conditions. The steel industry is set for a severe winter”

Other results from China this week showed the extent of the downturn. Baoshan Iron & Steel Co, China's second-biggest producer, posted an 83 per cent slide in net income last year, and Chongqing Iron & Steel Co. swung to a net loss of 5.99 billion yuan from a profit a year earlier.

As China's steel demand dropped and prices sank in 2015, mills in the country churned out less for the first time since 1981. Crude-steel production fell 2.3 per cent to 804 million tons last year, official data show. Output may drop to about 783 million tons this year, Li Xinchuang, deputy secretary-general of the China Iron & Steel Association, has forecast.
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