February 1, 2016

Global Economic Analysis and News of Note: Has Chinese Steel Production “Peaked”?

  • According to the China Iron & Steel Association, crude steel output in the country will fall by as much as two percent in 2016, a drop that would mark the first decline in production since 1990. Bloomberg Business said, “A contraction by the nation’s mills will be a boon to steelmakers from Brazil to the U.S., who say record exports from China are destabilizing the global market.” Bloomberg Intelligence analyst Yi Zhu said Chinese steel production has “peaked.” Additional evidence production in China may be declining: last Sunday, China’s State Council said it would cut steel production capacity by 100 million to 150 million tons over an unspecified period of time.