Arab Today, arab today 5 questions eu steel crisis and china
Last Updated : GMT 00:51:37
Arab Today, arab today
Arab Today, arab today

5 questions: EU steel crisis and China

Arab Today, arab today

Arab Today, arab today 5 questions: EU steel crisis and China

China is by far the world's biggest producer of steel, accounting for about half of global production
Beijing - AFP

Chinese steel production is being blamed for turmoil in the industry in Europe and elsewhere, while domestically it is also suffering. Here are five questions and answers on the issue.

1. How has China impacted the global steel market?

China is by far the world's biggest producer of steel, accounting for about half of global production.

As the country has urbanised in recent decades it became the world's biggest source of demand for steel, helping to send prices soaring.

Now that its economy is slowing, demand has fallen and Chinese producers have been left with the ability to produce hundreds of millions of tonnes more each year than they need domestically.

As a result, world export prices have plummeted from an all time high of $1,113 per metric tonne in July 2008 to just $321 last month, according to the website steelbenchmarker.com.

2. Is China dumping steel on global markets?

The EU has launched a dumping probe into Chinese steel, and European politicians have used the word to describe China's exports.

It is hard to confirm the charges, partly because dumping can refer both to a country exporting a commodity at a price less than is charged in its domestic market or a price less than the cost of production.

Dumping investigations are complex and often protracted. It can be difficult to work out production costs, and Europe measures them in different ways depending on whether it considers a country a "market economy".

The EU has granted Russia the status, but so far denied it to China.

Critics say dumping charges can be an excuse to evade world trading regulations that ban countries from unilaterally imposing import tariffs.

China's low labour costs mean it can sell profitably at prices well below EU firms.

Chinese officials contend that overcapacity in its steel sector is a result of cyclical change in the economy, and that they are striving to shrink the sector.

3. What are EU and Chinese authorities doing?

The EU in February imposed tariffs ranging from 9.2 percent to 13 percent on imports of steel bar used in construction from China.

But industry groups are calling for a much steeper tariff, along the lines of the 266 percent duties on Chinese steel recently imposed by the US.

China said last Friday it would impose import deposits, a form of anti-dumping duty, of up to 46 percent on flat-rolled electrical steel products from the European Union. But China's steel imports from the EU are negligible.

Beijing has also vowed to eliminate 100 million to 150 million tonnes of capacity -- out of a total of 1.2 billion tonnes -- by 2020. It said the reforms would cost 500,000 jobs.

4. Where does China’s steel go?

According to the World Steel Association, the majority of China's exported steel is sold in Asia -- about 51 million tonnes out of some 80 million tonnes exported in 2014.

Just under 20 million tonnes were exported to Latin America and the Middle East.

The same year, China exported just over six million tonnes to the European Union, about the same amount it sent to Africa.

5. Where does Europe’s steel come from?

EU countries get most of their steel imports from other countries in the bloc, accounting for some 101 million tonnes out of 134 million tonnes imported in 2014, according to the World Steel Association.

About 18 million tonnes that year came from former Soviet Union countries, and European states outside the EU.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today 5 questions eu steel crisis and china Arab Today, arab today 5 questions eu steel crisis and china

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today 17.4m tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4m tourists visit UAE in 2016
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 14:48 2017 Sunday ,26 February

$100 billion wasted trying to beat the market

GMT 12:06 2017 Sunday ,26 February

Britain banks on robots, AI to boost growth

GMT 12:00 2017 Sunday ,26 February

China to allow more IPOs to attract capital

GMT 06:31 2017 Sunday ,26 February

Consumer prices up in Canada
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday