Chinese steel production suffers first decline in 30 years

Chinese steel production fell  between January and September 2015, the first decline in 30 years, as mills struggle with a drop in  demand that has seen the price of a ton of steel drop from RMB2,4,00 to RMB1,550 over the past 12 months. Investment in China’s steel industry has also dropped – by 13.6%  – over the same period, with the  mills’ cumulative losses hitting RMB55,27bn.
In line with the country’s overall economy,  China’s steel industry has experienced double-digit growth for the best part of a decade but began to flatten out last year as domestic production started a decline from a peak of 702m tonnes to a predicted 470m tonnes in 2030.
“The Chinese steel industry has entered a period of contraction, and this trend will continue to exist for a long time,” deputy chairman of the China Federation of Logistics and Purchasing Cai Jin said this week.

Source: xinhuanet