China continues to produce more steel than the rest of the world, COMBINED

[TaiShang]

Output of crude steel records slight rise
Source: Xinhua | February 14, 2017, Tuesday |

CHINA’S crude steel output rose slightly last year, according to the country’s top economic planner yesterday.

Crude steel production rose 1.2 percent year on year to 808.37 million tons in 2016, compared with a 2.3 percent drop in 2015, according to the National Development and Reform Commission.

Meanwhile, steel prices continued to gain, with the domestic steel price index adding 11.23 points from November to 99.48 in December on average, up 44.13 points from the same period in 2015.

China’s oversupplied steel sector has experienced years of plunging prices and factory shutdowns due to a sluggish economy. However, with an upward trend in prices from the beginning of 2016, many steel mills are resuming production.

The central government has reiterated that cutting overcapacity is high on its reform agenda as excess capacity in steel and coal sectors has weighed on China’s economic performance.

China plans to reduce steel output by an additional 100 million to 150 million tons by 2020. Its 2016 target to cut 45 million tons was achieved ahead of schedule.

 

[TaiShang]

Orders from Taiyuan Iron and Steel continue to grow, the price of imported steel for pen tips has already plummeted by 25%!

Bye Bye, Japan and Switzerland

China manufactures its own ball pen tips
By Gong Jie
China.org.cn, February 15, 2017

China manufactures its own ball pen tips

Taiyuan Iron and Steel (TISCO), one of China's biggest stainless steelmakers, announced that it has started to produce and provide ball pen tips to Beifa Group, one of the country's largest ballpoint pen makers, ending the country's long-term reliance on imported ones.

This is the best answer to the "question on ball pen tips" posed by Chinese Primer Li Keqiang while visiting TISCO in early 2016.

Ball pen tips require extremely high grade stainless steel and precision equipment. For years, China has spent millions importing stainless steel and other equipment from Japan and Switzerland. But now, with the nationalization of ball pen tips, the price of imported ball pen tips has already dropped about 25 percent.

It is expected that there might be no need for imported steel within the next two years. The ball material manufactured in China not only meets national demand but can also be exported.

Since the beginning of 2017, the share price of TISCO has increased dramatically.

As a leading company in stainless steel industry, TISCO has always been committed to the development, production and application of critical materials in China. Its stainless steel products can be used in stainless steel balls, rockets, nuclear plants and high speed trains.

***

Eventually unavoidably expectedly...

 

[AndrewJin]

China manufactures its own ball pen tips
By Gong Jie
China.org.cn, February 15, 2017

China manufactures its own ball pen tips

Taiyuan Iron and Steel (TISCO), one of China's biggest stainless steelmakers, announced that it has started to produce and provide ball pen tips to Beifa Group, one of the country's largest ballpoint pen makers, ending the country's long-term reliance on imported ones.

This is the best answer to the "question on ball pen tips" posed by Chinese Primer Li Keqiang while visiting TISCO in early 2016.

Ball pen tips require extremely high grade stainless steel and precision equipment. For years, China has spent millions importing stainless steel and other equipment from Japan and Switzerland. But now, with the nationalization of ball pen tips, the price of imported ball pen tips has already dropped about 25 percent.

It is expected that there might be no need for imported steel within the next two years. The ball material manufactured in China not only meets national demand but can also be exported.

Since the beginning of 2017, the share price of TISCO has increased dramatically.

As a leading company in stainless steel industry, TISCO has always been committed to the development, production and application of critical materials in China. Its stainless steel products can be used in stainless steel balls, rockets, nuclear plants and high speed trains.

***

Eventually unavoidably expectedly...

Goodbye Japan and Switzerland

 

[Shotgunner51]

China will remain world’s biggest steel producer for the next 100 years: industry insider

2017-03-31 15:46 People's Daily Online Editor: Gu Liping

China will be the world's biggest steel and iron manufacturer for the next 100 years, predicted Li Xinchuang, vice chairman of the China Iron & Steel Association and president of the Metallurgical Industry Planning and Research Institute.

China (note: Mainland, excluding Taiwan) currently has the capability to produce over 800 million tons of crude steel per year. In 2016, the country's total crude steel output accounted for 50.3 percent of the world's 1.6-billion-ton output, according to statistics.

The country's actual consumption of steel and iron peaked in 2014 at 702 million tons, but then decreased to 664 million tons in 2015. However, last year, the figure witnessed a slight rise to 673 million tons, up 1.3 percent year on year. Experts explained that the turnover was spurred by the development of infrastructure and the automobile and real estate industries.

Li said the global steel and iron market has been transferred to China -- a change that he believes was driven by economic development and technological progress. He also noted that it was catalyzed by advantages related to labor, land and capital.

Li added that China's steel and iron industry is among the most competitive sectors of domestic manufacturing. The sector has reached a good standard in terms of quality, price, scale, service and brand. Additionally, China boasts the world's largest-scale and most dynamic demand, a sound industrial system and rich manpower, Li pointed out.

China has also made an unprecedented effort to cut overcapacity (note: installed capacity estimated at 1,200 million tons/year). Last year, the country announced plans to cut 100 to 150 million tons (note: tons/year) of overcapacity in the next five years.

 

[TaiShang]

Experts explained that the turnover was spurred by the development of infrastructure and the automobile and real estate industries.

Having seen the Changan CS95 debut the other day and observing progressive improvement, I am confident that China automakers will have an increasingly better domestic and international market positions, which will keep reinforcing demand for steel.

 

[Shotgunner51]

Having seen the Changan CS95 debut the other day and observing progressive improvement, I am confident that China automakers will have an increasingly better domestic and international market positions, which will keep reinforcing demand for steel.

Yes I believe automakers (cars, trucks) will continue to be one large driver of steel demand. I expect 28-35 million units per year for both domestic market and exports. Infrastructure absolutely, both at home and abroad, I expect roads/bridges, HSR, power grids, airports, seaports, data grids shall continue to expand. Don't forget massive infra-related machinery (e.g. SANY) industry shall grow with infra.

Real estates, big driver of steel. In commercial real estates alone, by now China houses 43% of skyscrapers in the world, this will pass 50% as urbanization is still proceeding.

I believe production volume within border will still accounts for 50%+ of world, need to build more capacities in overseas sites.

 

[Keel]

That is not a good thing when countries which are importing Chinese manufactured steels are complaining about export-dumping and filing such cases to WTO or levying ridiculous penalizing tariffs

What is more absurd are countries to use the cost of manufacturing the same grade of steel in india as the lowest cost benchmark and then conclude that China's cost of steel is manipulated or receiving government subsidies

 

[Shotgunner51]

China's Steel Output Surges to Record, Spurring Price Slide
Bloomberg News
April 17, 2017, 11:27 AM GMT+8 April 17, 2017, 3:39 PM GMT+8

• Increased supplies have caused prices to drop since mid-March
• Aluminum production was highest ever in first three months

China, which produces half the world’s steel, churned out a record quantity in March as mills benefited from healthy margins, setting the scene for a subsequent decline in prices.

Production of crude steel expanded 1.8 percent from a year earlier to 72 million metric tons, according to the National Statistics Bureau. That implies an average daily run-rate of 2.323 million tons, beating the previous monthly record in June. Output for the first three months was 201.1 million tons, up 4.6 percent from a year earlier.

Steelmakers profited from a surge in prices through mid-March as infrastructure spending and real-estate construction boosted demand. But the rally has faded. Reinforcement bar used in construction slumped in the past month, along with iron ore, as buyers worked through bloated stockpiles. Steel output has risen much faster than end-user demand, leading to increased inventories, BMI Research said in a note Monday before the data.

“I would expect output to decline from here,” Kevin Bai, analyst at CRU Group, said by phone from Beijing. “Some of the steel mills have released lower price guidelines for May and their outlook is quite negative for the second quarter. They will consider some more controls on the supply side to maintain prices.”

Rebar futures on the Shanghai Futures Exchange climbed more than 60 percent from the end of September through to mid-March, reaching the highest since 2013. They have since lost about 20 percent to 2,912 yuan ($423) a ton.

Production of primary aluminum was also higher. Output increased 2.5 percent to 2.71 million tons in March from a year earlier, the bureau said, and mills churned out a record 8.2 million tons in the first three months of 2017, about 11 percent more than a year earlier.

— With assistance by Martin Ritchie

https://www.bloomberg.com/news/arti...china-data-index-as-decline-accelerates-chart

 

[Shotgunner51]

Latin American imports of Chinese steel increased by 8% in Q1 2017
May 10, 2017 10:30:51 AM

As per data, China exported 1.9 million tons (Mt) of finished steel and steel-derivative products to Latin American region during the initial quarter of 2017.

The latest trade statistics released by the Latin American Steel Association (ALACERO) indicates that imports of Chinese steel by the region totaled 1.9 million tons (Mt) during the first three months in 2017.

As per data, China exported 20.2 million tons of finished steel and steel-derivative products to the entire world during the first three months of the current year. Out of this 1.9 million tons were shipped to Latin American countries. Imports of finished steel products totaled 1.7 million tons, whereas steel-derivatives products accounted for 190,000 tons. The total imports of Chinese steel by the region surged higher by 8% when matched with the first three months in 2016.

The key destination of Chinese steel in the region was Central America with 384,000 tons. The imports by Central America were marginally lower by 2% when matched with Jan-Mar ’16. The second largest regional importer of Chinese steel was Chile. The imports by Chile surged higher by 36% year-on-year to 349,000 tons. In third place was Peru with 297,000 tons. The imports by the country recorded sharp year-on-year growth of 26%.

The volume of Chinese steel imported by Latin American region dropped 6% during the first quarter of 2017. On the other hand, the volume of Chinese steel to the rest of the world surged higher significantly by 16%. The value of steel imported by Latin America from China amounted to $1,117 million. The average quarterly import price increased by almost one-third over the previous year to $580 per ton in Q1 ’17. The average import price by Central America, Peru and Costa Rica stood below the regional average at $499 per ton, $518 per ton and $527 per ton respectively. Also, the import prices of these regions were significantly lower when compared with the rest of the world.

The Chinese steel export volume totaled 20.2 million tons during Jan-Mar ‘17. Out of this, finished steel exports totaled 18.8 million tons and the balance 1.4 million tons accounted for steel-derivatives products. The steel exports by the country were down sharply by 26% when matched with the previous year. The Chinese steel exports had totaled 27.2 million tons during the initial three-month period in 2016.

Flat products accounted for 61% of the total imports of finished steel and steel-derivative products from China. The Latin American imports of flat products totaled 1.2 million tons during the first quarter of the current year. The major flat steel products imported during the period were sheets and coils of other alloy steels (421,000 tons) and hot rolled steel (293,000 tons). The flat steel product categories recorded 102% and 35% rise in imported volume respectively. The three largest importers of flat steel from China were Chile, Central America and Peru. The imports from these countries totaled 285,000 tons, 204,000 tons and 190,000 tons respectively during January to March.

Long steel imports totaled 420,000 tons in Jan-Mar ’17. The key long steel product imported by the region from China was wire rods. The imports of wire rods totaled 192,000 tons, declining by 17% when compared with Jan-Mar ‘16. The imports of bars plunged by 56% over the previous year to 179,000 tons. Central America was the largest importer of long steel in the region with imports of 139,000 tons.

In the first quarter of 2017, seamless tube imports from China totaled 62,000 tons, accounting for 3% of total finished steel and steel-derivative products that entered the region.

http://www.scrapmonster.com/news/la...inese-steel-increased-by-8-in-q1-2017/1/65032

 

[Han Patriot]

That is not a good thing when countries which are importing Chinese manufactured steels are complaining about export-dumping and filing such cases to WTO or levying ridiculous penalizing tariffs

What is more absurd are countries to use the cost of manufacturing the same grade of steel in india as the lowest cost benchmark and then conclude that China's cost of steel is manipulated or receiving government subsidies

That's the problem, Indian wages are around 3-4 times cheaper than China.

 

[Shotgunner51]

Global steel production rises 5% y/y in April
23rd May 2017 By: Creamer Media Reporter

Global steel production, as reported by the 67 member countries of the World Steel Association (worldsteel), rose by 5% year-on-year to 142.1-million tonnes in April.

China’s steel production increased by 4.9% to 72.8-million tonnes, while Japan’s output rose 3% year-on-year to 8.8-million tonnes. The US produced 6.7-million tonnes of steel, an increase of 1.8% year-on-year.

South Africa’s production, meanwhile, fell by 8.8% year-on-year to 493 000 t, while Egypt increased its steel production by 45.2% year-on-year to 512 000 t.

Meanwhile, worldsteel said the crude steel capacity utilisation ratio increased by 2.5 percentage points year-on-year to 73.6%. This was also 1.7 percentage points higher than March.

http://www.engineeringnews.co.za/ar...on-rises-5-yy-in-april-2017-05-23/rep_id:4136

 

[AndrewJin]

Global steel production rises 5% y/y in April

23rd May 2017 By: Creamer Media Reporter

Global steel production, as reported by the 67 member countries of the World Steel Association (worldsteel), rose by 5% year-on-year to 142.1-million tonnes in April.

China’s steel production increased by 4.9% to 72.8-million tonnes, while Japan’s output rose 3% year-on-year to 8.8-million tonnes.

The US produced 6.7-million tonnes of steel, an increase of 1.8% year-on-year.

South Africa’s production, meanwhile, fell by 8.8% year-on-year to 493 000 t, while Egypt increased its steel production by 45.2% year-on-year to 512 000 t.

Meanwhile, worldsteel said the crude steel capacity utilisation ratio increased by 2.5 percentage points year-on-year to 73.6%. This was also 1.7 percentage points higher than March.

http://www.engineeringnews.co.za/ar...on-rises-5-yy-in-april-2017-05-23/rep_id:4136

world economy is recovering

 

[Jlaw]

That's the problem, Indian wages are around 3-4 times cheaper than China.

Do you much about the quality of Indian steel?

 

[Keel]

That's the problem, Indian wages are around 3-4 times cheaper than China.

Using indian's steel production as bench mark is erroneous because indians have tons of production problems like those stated below. Lower wages cant save them from losing their competitiveness

http://www.yourarticlelibrary.com/i...aced-by-indian-iron-and-steel-industry/19691/

http://events.steelmintgroup.com/10-issues-that-has-brought-down-the-indian-iron-steel-industry/

But putting that aside, it is WTO that has turned its back on us in contravention to its rules. I am glad that @JSCh has brought this important issue up @ post # 6606. Indian's benchmarks costs; or whoever's for this matter is a
non-issue
https://defence.pk/pdf/threads/china-economy-forum.80982/page-441

 

[onebyone]

Don't Blame China for the Fall of American Steel
David Fickling
June 13, 2017 4:00 PM EDT

There's a simple argument behind President Donald Trump's complaints that China's steel mills are killing their American rivals.

Since 2000, China's output of steel has risen more than 560 percent, from just over 100 million metric tons a year to 690 million tons in the past 12 months. During the same period, U.S. employment in manufacturing primary metals like steel, aluminum and copper has dropped 38 percent, from 625,000 to 385,000 jobs.

Rust Belt

With Department of Commerce officials set to brief Congress Friday on an investigation into whether steel imports threaten U.S. national security, and Commerce Secretary Wilbur Ross weighing anti-dumping measures, it's worth asking whether that relationship is as straightforward as it seems. After all, about the closest thing the global steel industry has to a fundamental law of nature is the steel intensity curve.

Poor countries use very little steel per unit of gross domestic product. As they industrialize, this steel intensity increases rapidly, to the point where the country starts to transition toward consumer-led growth. At that point, steel intensity starts to slip again, as spending shifts from industrial products like machinery and buildings, to less metal-intensive categories, such as yoga mats and degustation menus:

Considered in the context of the evolution of steel intensity, it's clear that U.S. metal output isn't declining because of overseas competition, but because as America gets richer, it's buying different stuff.

Employment is also suffering because the steel the U.S. does still produce is being made more efficiently: Labor productivity in the U.S. primary metal sector has risen from 54 in 1987 to 115 in 2016, according to the Bureau of Labor Statistics.

You have to squint quite hard to even see Chinese steel imports to the U.S., when compared to the size of the domestic trade. The country's mills produced about 79 million tons over the past 12 months, versus about 742,000 tons of imports from China, which only just makes it into the top 10 exporters.

Rolled

China only just makes it into the top 10 steel exporters to the U.S. by value

In every subcategory of traded steel, China is little more than a footnote in terms of U.S. imports:

Trading Places

China barely shows up as an exporter of steel to the United States

Ross is on slightly firmer footing in his claim that China's domestic steel glut is contributing to the recent weakness in prices -- but only slightly. While China is certainly a big exporter of steel, the vast majority goes to other countries in Asia, most of them emerging economies that lack the domestic capacity to meet their own demand.

Charity Begins at Home

The top 10 importers of Chinese steel are all in Asia

To the extent that prices of U.S. and Chinese steel tend to go hand-in-hand, it's more because both industries use raw materials -- iron ore, coking coal, scrap, and natural gas -- that really are traded on a busy global market.

Isn't there at least a case for whacking Chinese steel producers as a message to Trump's base that he's standing up for their jobs? That's a pretty lame argument, and unfortunately it doesn't even make sense on its own terms.

Buyers and Sellers

Ten times as many U.S. manufacturing jobs depend on steel consumption as steel production

The U.S. manufacturing sector doesn't just contain steelmakers -- it contains steel-users too. While primary steelmaking employs 385,000 Americans, transforming that metal into fabricated parts, machinery and vehicles accounts for about 4.1 million jobs. All things being equal, those industries have most to lose from a U.S. steel industry that can use protection from overseas competition to raise prices.

The U.S. has everything to gain and little to lose from open global markets. In trying to hurt China, Washington risks shooting itself in the foot.

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

https://www.bloomberg.com/gadfly/am...-t-blame-china-for-the-fall-of-american-steel