Posted on 07 Apr 2015
China’s steelmakers suffer losses of $507 million in Jan-Feb
According to China′s Iron and Steel Association (CISA), medium and large steel mills in China have been loss US$507.1 million in the first two months of this year.
Wang Liqun, vice president of CISA, said it is due to oversupply and slower demand.
Chinese steel mills have struggled with these problems in 2014, also the cost of environmental protection was increased too, which forced many uncompetitive plants to close.
Steel consumption in China fell by 4% to 740 million tons in 2014 and production of crude steel rose by 0.9% to 820 million tons, the lowest rate in more than three decades.
Chinese steel mills have resorted to exports, which rose to a record high 93.78 million tons last year, but Wang warned that increasing trade frictions put pressure on Chinese steel exports.
