China has to drop steel exports under global scrutiny
China's international commitment to diminish its huge steel capacity has to result in a contraction in exports. That’s what an official from the World Steel Association revealed, as countries around the globe scrutinize Beijing's progress resolving a chronic glut.
While the world's number one steel maker turns to be throwing more weight behind efforts to drop capacity, China's 2016 exports are still on track to beat the previous year's record of 112 million tons as well as in August, domestic production surged for a sixth straight month.
The head of the raw materials committee at the World Steel Association, Kazuo Tanimizu informed Reuters that China has to reduce exports. Well, unless they cut exports, the capacity drops aren’t effective at all.
Faced with global anger from Asia to American and the EU over a flood of cheap Chinese steel products, Beijing pledged to drop steel capacity this year by approximately 45 million tons and by 100-150 million tons over five years.