It is reported that Mr. Wang Liqun, vice chairmanan of China Iron and
Steel Association (CISA) said that the country's steel consumption will
continue to be negative growth with an estimated fall of 6% this year, after
Australia and New Zealand Banking Group Limited (ANZ) estimated a week ago of a
drop of 4% this year and 2% in 2016, added that a slowdown in the world's No. 2
economy will continue to hurt industrial demand.
Chinese crude steel consumption fell by 3.4% in 2014, decreasing for the first
time since 1981, and dropped again in the first quarter this year, driving
producers to sell more steel overseas.
Furthermore, the government data showed last Wednesday that China's crude steel
output fell 1.3% to 270 million tons in the first four months.
The oversupply in both steel and iron ore will drive prices lower and has
significantly cut profits for both steelmakers and miners.
Source: Yieh.com