Excess steel production may become a new "battlefield" for China EU trade disputes.
according to the U.S. Wall Street on June 7, the steel trade issue, after solar panels and wine, may become a new "battlefield" for trade disputes between China and the EU. The Wall Street claimed that "the business model of China's steel enterprises has brought challenges to European steel manufacturers". The report said that although the global steel demand this year reached 80% of the output again, the overcapacity of China's state-owned steel enterprises was still obvious, causing a collective correction in European steel stocks. At the same time, with the slowdown of China's economic growth, the oversupply of the steel industry has become a set. Jefferies said that China's steel production has reached 800million tons this year, while the demand is only 684 million tons; Mauser has installed recycling centers in the United States, Brazil and Europe. Another 2 In addition to the time and speed of puncturing, Chinese steel prices have fallen by 13 to 16 percentage points this year. As a result, Chinese steel producers expect to export a large number of products, which will add a lot of downward pressure on steel prices in the European market. Wall Street believes that it is very simple to solve the problem of excess supply in the steel industry - close some steel companies. But this is also the reason why Morgan cannot become the mainstream material in society. 1. According to the analysis of Morgan Stanley, in China, the steel industry is an important source of jobs, which has solved the problem of overcapacity, followed by an unemployed army of more than 4million people. Moreover, China's major steel giants are state-owned enterprises, and many steel companies derive their income from low interest rate loans provided by banks, so it is not feasible to shut down steel enterprises on a large scale in China. However, even if China's steel production slows down, it will not be able to solve the difficulties faced by European steelmakers in the short term. Weak steel demand in China has led to a sharp fall in iron ore prices and a setback in mining stocks in recent days. The decline in iron ore prices is also expected to improve the profit margin of steel manufacturing