Major overcapacity in the global steel industry

10/10/2013 - Report
ic_blogtagEconomic OutlookChinaMetalDemandGrowthPriceProduction
Today China is home to nearly 50% of global steel production. Slowdown in global demand to only +1.8% y/y in July 2013 and +3% forecast for 2014. Very different regional production levels before and after the 2008 crisis. More than 300 million tons of overcapacity has driven down prices by -10% at an annual average by July 2013. Falling prices have led to a collapse in profitability. Rationalization of the sector is necessary but difficult to carry out.

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Major overcapacity in the global steel industry - Report