Arab Today, arab today output in bloated steel industry continues to rise in china
Last Updated : GMT 14:55:50
Arab Today, arab today
Arab Today, arab today

Output in bloated steel industry continues to rise in China

Arab Today, arab today

Arab Today, arab today Output in bloated steel industry continues to rise in China

Steel industry in China
Beijing - XINHUA

Output in China's steel industry has continued to rise and prices continue to fall, as the government struggles to reduce capacity in the sector.
Crude steel production gained 2.7 percent year on year to reach 343 million tonnes in the first five months of the year, although the growth was down 5.3 percentage points from the rate during the same period last year, the National Development and Reform Commission (NDRC) said in an online report.
During the January-May period, the steel price index came in at 95.09, down 0.66 from a month earlier, according to the NDRC.
In the first four months, the steel industry earned 41.2 billion yuan (6.7 billion U.S. dollars), down 16.4 percent.
The government has been at pains to digest production gluts from an investment boom spawned by generous subsidies in the past few years that saw producers in "favored" sectors, including steel, expand rapidly with little regard to real market demand.
To gradually solve the problem, a ban of new projects in steel, cement, electrolytic aluminum, flat glass and shipbuilding industries before 2017, and a gradually elimination of existing substandard projects are underway.

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