Is overcapacity outside China affecting the recovery of the global steel industry?

A recent report issued by the Organization for Economic Cooperation and Development (OECD) warned that overcapacity outside China is affecting the recovery of the global steel industry. International observers believe that overcapacity in steel and other industries is a global problem. In the past two years, China has cut production capacity to help the global steel and other industries recover from the downturn caused by overcapacity. In the future, countries should continue to strengthen communication and cooperation to jointly meet the challenge of overcapacity.

The challenge of global overcapacity still exists.

According to the report issued by the Iron and Steel Committee under the OECD, the global steelmaking capacity in the first half of 20 17 was 2.36 billion tons, only 0.6% lower than that in the same period of 20 16. Among them, the steel production capacity in the Middle East, South America and other European countries except the European Union has increased substantially. Li Fen Top, Chairman of the Iron and Steel Committee, said frankly: "Excess capacity is at a worrying high level."

This report predicts that from 20 17 to 20 19, the global steel production capacity will increase by nearly 40 million tons, including about 23 million tons in the Middle East.

Alistair Ramsey, director of the American Metal Market Research Company, said that increasing steel production capacity in any region may pose obvious risks to future steel pricing and profits.

According to the OECD report, global steel demand will pick up in the future, but it is not enough to digest the current excess capacity. Chris holden, an analyst at the British Commodity Research Institute, also predicted that global demand growth was insufficient to provide a reasonable basis for new capacity.

Li Bo, a visiting researcher at the Center for International China Studies at Aichi University, told Xinhua that the global overcapacity problem is still very serious, mainly concentrated in traditional industries such as steel, non-ferrous metals and rubber, which mainly process raw materials, while the overcapacity in emerging markets and developing countries is relatively concentrated.

China has made outstanding contributions to capacity reduction.

Overcapacity is a cyclical phenomenon and structural problem under the condition of market economy. Since the outbreak of the international financial crisis, the downward trend of the world economy has led to shrinking demand, which is the fundamental reason for the overcapacity in the global steel and other industries.

Overseas experts also pointed out that after the international financial crisis, many countries adopted large-scale economic stimulus measures to give priority to the development of steel, petrochemical and other industries, but limited investment in science and technology led to overcapacity in the middle and low end, insufficient high-end capacity and structural overcapacity.

Some western politicians and enterprises are keen to accuse China of overcapacity, which is not objective and unfair. In fact, in recent years, China has taken the supply-side structural reform as the main line, actively digested and eliminated excess capacity such as steel and coal, and made contributions to the international community.

China's efforts to cut production capacity are unique in the world. According to official data, China withdrew more than 65 million tons of steel production capacity last year, which will be reduced by about 50 million tons this year. China Iron and Steel Industry Association said that China has basically achieved the goal of reducing excess capacity by 654.38 billion to 654.38 billion tons within five years set last year.

Edwin Basson, Director General of the World Iron and Steel Association, said that China has played a prominent role in reducing global excess capacity. In the past two years, China has cut production capacity equivalent to the total production capacity of the United States.

In an interview with Xinhua News Agency, Ramsey said that the global steel overcapacity has been declining since the end of 2065438+2005, and China has made great contributions.