Speaking in Beijing, Shen Wenrong, chairman of Jiangsu-based Chinese steel producer Shagang, commented on the current state of the Chinese steel industry, stating that the industry still has some room for development since domestic steel consumption is still short of peak levels. Against this, he admitted that the domestic steel industry would be characterized by high costs and low profit margins for some time to come.
Meanwhile, the Shagang chairman stated that China is facing a crisis regarding iron ore imports and coking coal, mainly due to the significant price increase in iron ore imports, especially since China is greatly dependent on imports of iron ore.
Among the challenges facing the Chinese steel industry, Mr. Shen included the requirements of the low-carbon economy, the negative impact of foreign exchange rates, inflation, and official measures to control the real estate sector.