The off-season to excess steel production capacity crisis is worsening situation gradually

Since the end of June, due to the downstream demand steel market to enter the off-season, but it also makes overcapacity crisis was worsening. Yesterday, Beijing commercial daily reporter learned that, steel prices fell, the deterioration of ore prices, profit has become a recent vicious cycle of iron and steel industry. Industry pointed out that can illustrate the performance of the market at present, the current level of demand there is no way to match the supply capacity. “ Melts the Chinese steel industry overcapacity, it is by no means a simple through a cold winter, it is a long and painful process. ” , chairman of the Chinese society for metals kuang-di xu said. It is understood that the typical excess iron and steel industry has become China's industry. Has the agency estimates that if China's macroeconomic growth is a smooth landing, steel industry excess capacity will be 200 million - 300 million tons. Governance excess steel production capacity has experienced several rounds of selection, but the effect is not obvious, in some areas appear even more reduce the phenomenon. Kuang-di xu and other experts believe that China's governance steel overcapacity, need at least 5 - Over 10 years. Because the policy adjustment and restructuring will take time.