China steel consumption said near peak

Jun 20, 2012 | 04:29 PM | Frank Haflich

Tags  Steel Success Strategies conference, scrap, Wu Wenzhang, Shanghai Steelhome, Li Zinchuang, Pierre Mangers, Richard McLaughlin, Frank Haflich

NEW YORK — As Chinese steel consumption nears its peak, overcapacity and restructuring loom as increasingly critical issues to the country’s industry, observers say.

Wu Wenzhang, president of consultant and data provider Shanghai Steelhome, said Chinese steel consumption should peak at 750 million tons per year in the 2013-to-2015 timeframe. By then, he said, "overcapacity in all aspects" will help speed up restructuring moves such as mergers and acquisitions.

But Chinese mills won’t pass their excess capacity on to the rest of the world, Wu said at the Steel Success Strategies XXVII conference in New York co-sponsored by AMM and World Steel Dynamics Inc., noting that China’s government not only doesn’t encourage steel exports but in some cases has placed controls on them. ....

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