5/20/16 | By: Holly Ellyatt & Karen Tso
Despite China signaling moves to cut its excess steel production capacity, industry chiefs say the country has declared a metals “war” that has had a “devastating” impact for the rest of the world’s industry.
Overcapacity in the steel industry has been a thorn in the side of the sector in recent years, pushing prices down and making it harder for some steel companies to survive.
China’s low-cost metal producers have been widely cited as the main culprit for the glut. In particular, the world’s second largest economy has been accused of “dumping” cheap steel on to global markets, due to a slowdown in domestic demand, in a bid to gain market share. However Beijing has denied any wrongdoing and has said that its costs are lower than other producers.
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