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

[Bussard Ramjet]

Big and lean is what we need.

I thought the slogan was mean and lean. But anyways, you use it in any number of ways to support whatever you want.

Sometimes small and lean, sometimes big and lean.

Small in terms of population and military, big in terms of bloated State owned enterprises.

 

[Shotgunner51]

This will give needed boost to the slowed down Chinese market and will speed up the NYSE a little too. They love mergers and acquisitions and when companies consolidate their operations and synergies. The share prices for the acquired company should go up significantly.

Good points you have made here, it's always about boosting values

Consolidation: World market size is around 1.6 billion tonnes/year, while China produces more than 0.8 trillion/year, already more than half of world total. However China's installed capacity is at least 1.2 billion/year, so much over-capacity. Consolidation of assets is urgently needed, investors/bankers want to see that. And no more destructive cost competition, no more unnecessary anti-dumping revenge by foreign governments (e.g. frequent anti-dumping investigations from EU).

Synergy: Despite gigantic overall scale, Chinese firms still need to boost technology in order to better compete in high value-added steel segment, compete against high-tech mecca POSCO of South Korea (see link WIPO 2015 Edition, Global Patent Top 100), JFE Steel, NIPPON Steel. China must synergize national R&D resources, and aim at further increase global market share to say 60-70%.

http://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2015-section1.pdf​

 

[Viper0011.]

Yet another merger. Restructuring continues at full speed, as it seems. I am happy that CITS is being handled, as well. Hope this will create a better travel company because my experience in HK with them was not a pretty one..

Yea but your economic indicators are reflecting a slow down and downwards movement in consumer strength and price index, resulting in creating jolts across the entire world since the mid of 2015!!

 

[Zsari]

I thought the slogan was mean and lean. But anyways, you use it in any number of ways to support whatever you want.

Sometimes small and lean, sometimes big and lean.

Small in terms of population and military, big in terms of bloated State owned enterprises.

Whatever the slogan, the overall employee numbers should be a lot less than prior to the merger.

 

[TaiShang]

Yea but your economic indicators are reflecting a slow down and downwards movement in consumer strength and price index, resulting in creating jolts across the entire world since the mid of 2015!!

Slow down is anticipated and not necessarily a bad thing for China with domestic consumption and the service sector being major driving forces for growth. The rest of the world is obviously least of our concern.

In the meantime, the real drag on the global economy is the weak recovery in your economy, which continues to lose steam in employment, GDP growth and spending.

I will not even mention that the reason for the latest global recession was your country, to begin with.

 

[Shotgunner51]

China continues to produce more steel than the rest of the world, combined
David Scutt, Business Insider Australia
2st October 2016

Baogang Steel Industrial Co., Ltd.​

China yet again produced more crude steel than the rest of the world (ROW) combined in September, according to new data from the World Steel Association released on Thursday.

Chinese output has now outpaced that in all other nations in six of the past seven months.

Approximately 132.9 million tonnes of crude steel was produced during the month, with China accounting for 68.2 million tonnes of that total.

World Steel reports that Chinese output was up 3.9% on the levels of a year earlier, helping to offset declines in other nations.

In the first nine months of the year, a total of 1.197 billion tonnes of crude steel has been produced worldwide, down 0.5% on the same period in 2015.

Over the same period, Chinese output stood at 603.8 million tonnes, an increase of 0.4%.

This chart from World Steel underlines that the small year-on-year increase in crude steel output seen in September was entirely driven by a re-acceleration in China.

The group notes that the countries included in the chart accounted for approximately 99% of total world crude steel production in 2015. ​

http://www.businessinsider.com/chin...l-than-the-rest-of-the-world-combined-2016-10

 

[C130]

and I wonder how much of this steel just sits idle for years in warehouses and out in the open to rust.

 

[Shotgunner51]

and I wonder how much of this steel just sits idle for years in warehouses and out in the open to rust.

First of all, the market of supply-vs-demand will adjust itself through many ways, say price, so don't be stunned by sheer numbers.

Moreover, when it's about China, there are many industries, infrastructures, that are larger than ROW (rest-of-the-world combined). Say concrete, aluminium, copper, fiber optics, railways, heavy machineries, urbanization, so this news about steel isn't exactly a surprise (it has happened before, note the phrase "continues to"), it's very normal.

 

[C130]

the West has already hit China for dumping steel, and China steelmakers are losing a lot of money and are actually on the verge of defaulting.

the government is going to have bail them out if they aren't already doing it now

http://www.reuters.com/article/us-china-steel-overcapacity-idUSKCN0XA033

http://www.afr.com/markets/commodit...s-debt-reaches-us150b-says-ey-20160817-gqv7nn

 

[Chinese-Dragon]

Steel is for building actual tangible things (infrastructure, buildings, capital goods, machinery, etc.), no wonder we are producing so much.

Makes you wonder though, about all those countries posting economic growth, while their steel production/usage isn't much at all... what are they actually building?

 

[Shotgunner51]

the West has already hit China for dumping steel, and China steelmakers are losing a lot of money and are actually on the verge of defaulting.

the government is going to have bail them out if they aren't already doing it now

http://www.reuters.com/article/us-china-steel-overcapacity-idUSKCN0XA033

http://www.afr.com/markets/commodit...s-debt-reaches-us150b-says-ey-20160817-gqv7nn

You mean rise of protectionalism in the west? Sure there are, I saw that too, hilarious aren't they? I wonder who are practicing free-market capitalistism these days, and who are trying to hide state-sponored incompetence behind trade barriers.

Like I mentioned in the other thread, world market (including China) size/demand is now 1.6 billion tonnes per year, but China has an installed supply capacity of 1.2+ billion tonnes per year (that's gigantic assets), no doubt there's an over-capacity, which is driving down prices. So bottom-line got hit, very likely, but gross margin (or EBITDA) still no problem, especially when upstream iron ore are at rock-bottom cheap. As top planner for steelmakers and banks, the governmet is now orchestrating an industry overhaul ("Supply-Side Reform" launched in 2015) through practical measures like M&A, sell excessive capacity (i.e. selling assets), debt-equity-swap, what bailout?

 

[C130]

You mean rise of protectionalism in the west? Sure there are, I saw that too, hilarious aren't they? I wonder who are practicing free-market capitalistism these days, and who are trying to hide state-sponored incompetence behind trade barriers.

Like I mentioned in the other thread, world market (including China) size/demand is now 1.6 billion tonnes per year, but China has an installed supply capacity of 1.2+ billion tonnes per year (that's gigantic assets), no doubt there's an over-capacity, which is driving down prices. So bottom-line got hit, very likely, but gross margin (or EBITDA) still no problem, especially when upstream iron ore are at rock-bottom cheap. As top planner for steelmakers and banks, the governmet is now orchestrating an industry overhaul ("Supply-Side Reform" launched in 2015) through practical measures like M&A, sell excessive capacity (i.e. selling assets), debt-equity-swap, what bailout?

it's pretty obvious China has been dumping steel like crazy. me personal I'd buy up all that cheap steel and start building like crazy, but sadly it's not my call.

China builds a building then tears down the next day and repeats the process to keep growth going. It's pretty crazy

 

[Nilgiri]

China continues to produce more steel than the rest of the world, combined
David Scutt, Business Insider Australia
2st October 2016

View attachment 345391

Baogang Steel Industrial Co., Ltd.​

China yet again produced more crude steel than the rest of the world (ROW) combined in September, according to new data from the World Steel Association released on Thursday.

Chinese output has now outpaced that in all other nations in six of the past seven months.

Approximately 132.9 million tonnes of crude steel was produced during the month, with China accounting for 68.2 million tonnes of that total.

World Steel reports that Chinese output was up 3.9% on the levels of a year earlier, helping to offset declines in other nations.

In the first nine months of the year, a total of 1.197 billion tonnes of crude steel has been produced worldwide, down 0.5% on the same period in 2015.

Over the same period, Chinese output stood at 603.8 million tonnes, an increase of 0.4%.

This chart from World Steel underlines that the small year-on-year increase in crude steel output seen in September was entirely driven by a re-acceleration in China.

View attachment 345387
The group notes that the countries included in the chart accounted for approximately 99% of total world crude steel production in 2015. ​

http://www.businessinsider.com/chin...l-than-the-rest-of-the-world-combined-2016-10

Bro what is current domestic steel consumption for China and are there any forecasts for this?

 

[AndrewJin]

No surprise.

Right now, thousand of miles of Metro, High-speed Rails, Expressways are being built at the same time.
Urbanisation rate is still quite low at around 50% （less than 45% in Western China).
Every year the urbanisation rate increases by 1%, which means 13 million people are moving from the countryside to different level of cities in one year.

Before 2020, 332 new junior and middle schools will be built in Wuhan City alone.
Total number will reach 1285 in 2020.

At least 8 new subways and intercity will open before 2020 in Wuhan, 2 in this year.

We need at least 2000,0000 m2 new housing.

We need numerous expressways and elevated roads in the urban mega-region to tackle the traffic issue.

We need new terminals and at least 2 new high-speed rail hubs.

We need to build hospitals, shopping malls, stadiums, parks and administrative centres quicker than the current speed.

I am not really satisfied with the speed in Wuhan, people are complaining about lack of infra.


Subway plan of the capital of China's poorest province

Urumqi Subway, Xinjiang

 

[Beast]

That is pretty crazy. Where's your source for that claim?

He got no source. Just his personal unprofessional perception that China is collapsing.