Steel in­dus­try in worst shape in 20 years

China Daily (Canada) - - NEWSCAPSULE -

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)

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