China’s Ministry of Industry and Information Technology (MIIT) has stated in an article issued on January 16 that, with China’s economy entering into a phase of medium-speed development following its previous high-speed growth, China’s steel industry has presented characteristics of low growth, low prices and low levels of consolidation, while facing strong pressure from issues such as oversupply and environmental protection.
The growth of China’s crude steel output in 2014 is expected to indicate a five percentage point decrease compared to 2013, with crude steel output expected to total 815 million mt, MIIT said. Secondly, fixed asset investment in China’s ferrous metal smelting, rolling and processing industry indicated a 4.7 percent year-on-year decline in 2014. Thirdly, domestic steel enterprises have adapted to the changing market and have increased their focus on services. Fourthly, MIIT added, Chinese steelmakers have actively upgraded their equipment to meet environmental protection standards in line with new environmental laws.
As for 2015, MIIT suggests China’s steel industry should take the opportunity to upgrade technology, find new business modes and foster new points of growth, while continuing to resolve its overcapacity problem and lower costs and pollution emissions.