Steel industry in worst shape in 20 years
China’s steel industry is in its toughest year in two decades, with falling prices, weak demand and overcapcity leading to mergers and acquisitions, industry experts said.
In the first two months of 2014, large and medium-scale Chinese steel companies ran a total loss of 2.8 billion yuan ($454 million), according to Li Xinchuang, head of the China Metallurgical Industry Planning and Research Institute. The loss worsened in March, he said.
“Solving overcapacity is key to various problems of China’s steel industry,” Li said. “Many Chinese steel companies face operational difficulties and obstacles to upgrading while many problems in the industry are closely related to overcapacity.” (Photo 3)