Economy
CISA Predicts Chinese Steel Consumption Will Drop 6% in 2015
Written by Sandy Williams
May 20, 2015
The China Iron and Steel Association (CISA) says steel consumption in China will fall approximately 6 percent this year. The forecast is lower than was predicted by the Australia and New Zealand Banking Group (ANZ) which anticipates consumption to fall 4 percent this year, followed by 2 percent in 2016.
Wang Liqun, vice chairman of CISA told an industry conference that the slowdown in the world’s No. 2 economy will continue to hurt industrial demand.
China crude steel consumption fell for the first time since 1981 when it dropped 3.4 percent last year. In the first four months of 2016 crude steel output fell 1.3 percent to 270 million tonnes, according to government data.
Steel oversupply has been a continuing problem in the country with overcapacity estimated at around 300 million tonnes.
According to Liqun the oversupply drives prices lower and cuts profits for steelmakers and miners.
There is no winner at all,” he said, “the profit margin has dropped significantly.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Architecture firm billings remain down in January
Architecture firms continued to report a sharp reduction in billings in January, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.
New York state manufacturing rebounds in February
Business activity in New York state’s manufacturing sector recovered nicely in February after a sharp decline the previous month, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York. The general business conditions index rose 18 points to 5.7. This is a diffusion index, where a positive reading signifies […]
Dodge Momentum Index jumps to record high in January
The Dodge Momentum Index (DMI) rose to a record high in January, according to the latest data released by Dodge Construction Network.
CRU: China hits back with retaliatory tariffs on US
Targets include coal, liquified natural gas, crude oil, and other commodities
ISM: Manufacturing expands in January for first time in years
Following more than two years of contraction, US manufacturing activity rebounded in January according to the Institute for Supply Management.