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                        Two main reasons for the growth of steel exports: consumption decline and price difference
                        Author: Anshan Zizhu Heavy Steel Co.  Time:2016-07-14  Browsing times :3034
                        In recent years, excess capacity is decline in steel prices is an important factor that affects the, and steelmaking raw iron ore and coking coal prices decline also affect the decline in steel prices of the main factors, and between 2010 and 2015 during production per ton of iron ore and coking coal costs decreased $300 / ton. Resulting in lower steel prices, or more precisely the reason for lower profits or losses caused by steel is a global steel overcapacity, both in China and outside of china. When demand and production capacity of nearly 2.5 tons of difference, to find a permanent solution to solve the difficulties of the iron and steel industry is not easy.
                        Recently, the United States announced that imports of steel from China to impose high anti-dumping duties, while Europe has begun to take measures to limit China's steel into the European market, but the current relatively small number of sanctions. However, it should be noted that in 2015 China's exports to the United States accounted for only 2.4% of its total exports, while exports to Europe accounted for only 10% of its total exports. In 2015, China's exports to the rest of Asia and the Middle East accounted for 70% of its total exports.
                        Most of the Chinese steel exports to Asian countries, and thus these countries or regions and steel companies to more choose to export steel to other regions. More important is to protect domestic iron and steel enterprises and maintain domestic steel prices higher than the Chinese steel prices, governments in these countries will take a risk of the domestic steel industry competitiveness dropped significantly, unless the all imports containing steel product tax or banned the import, and thus take the benefits of trade protection is only temporary.
                        Many countries in the implementation of anti-dumping investigations against imports from China, and the future is likely to take further action. In order to alleviate the negative impact of anti-dumping measures, the Chinese government sought to abolish the export tax rebate and allow some iron and steel enterprises bankruptcy, which indicates that the government did not give subsidies to iron and steel enterprises. The Chinese government has promised to close 1 billion -1.5 billion tons of crude steel production over the next five years, and has set up a $1000 prize to help iron and steel enterprises deal with a series of problems caused by the reduction of production capacity.
                        The definition of dumping is clearly not applicable to Chinese steel. The definition of dumping is that the export of steel is not only lower than the domestic market price, but also lower than the cost of production. And China's steel export prices are almost always higher than the domestic price, and until the second half of 2015 or has been profitable, and in 2016 the current steel exports are profitable. Due to the Chinese domestic steel prices are far below the United States and the European Union, the United States and the European Union has accused the Chinese government of giving subsidies to iron and steel enterprises, so that it is more competitive in the European and American markets.

                        In the highly politicized and absorbed in their own interests in the process of anti-dumping, some national or regional governments have come up with so-called evidence that Chinese government grant subsidies to its steel industry, including low cost financing and providing free infrastructure, as many economies of the government to do so, and the definition of China as a non market economy. Although some of China's iron and steel enterprises are state-owned enterprises, but a large number of Chinese iron and steel enterprises are not to enjoy the efficient operation of the subsidies of enterprises.

                        In recent years, excess capacity is decline in steel prices is an important factor that affects the, and steelmaking raw iron ore and coking coal prices decline also affect the decline in steel prices of the main factors, and between 2010 and 2015 during production per ton of iron ore and coking coal costs decreased $300 / ton. Resulting in lower steel prices, or more precisely the reason for lower profits or losses caused by steel is a global steel overcapacity, both in China and outside of china. When demand and production capacity of nearly 2.5 tons of difference, to find a permanent solution to solve the difficulties of the iron and steel industry is not easy.
                        Recently, the United States announced that imports of steel from China to impose high anti-dumping duties, while Europe has begun to take measures to limit China's steel into the European market, but the current relatively small number of sanctions. However, it should be noted that in 2015 China's exports to the United States accounted for only 2.4% of its total exports, while exports to Europe accounted for only 10% of its total exports. In 2015, China's exports to the rest of Asia and the Middle East accounted for 70% of its total exports.
                        Most of the Chinese steel exports to Asian countries, and thus these countries or regions and steel companies to more choose to export steel to other regions. More important is to protect domestic iron and steel enterprises and maintain domestic steel prices higher than the Chinese steel prices, governments in these countries will take a risk of the domestic steel industry competitiveness dropped significantly, unless the all imports containing steel product tax or banned the import, and thus take the benefits of trade protection is only temporary.
                        Many countries in the implementation of anti-dumping investigations against imports from China, and the future is likely to take further action. In order to alleviate the negative impact of anti-dumping measures, the Chinese government sought to abolish the export tax rebate and allow some iron and steel enterprises bankruptcy, which indicates that the government did not give subsidies to iron and steel enterprises. The Chinese government has promised to close 1 billion -1.5 billion tons of crude steel production over the next five years, and has set up a $1000 prize to help iron and steel enterprises deal with a series of problems caused by the reduction of production capacity.
                        The definition of dumping is clearly not applicable to Chinese steel. The definition of dumping is that the export of steel is not only lower than the domestic market price, but also lower than the cost of production. And China's steel export prices are almost always higher than the domestic price, and until the second half of 2015 or has been profitable, and in 2016 the current steel exports are profitable. Due to the Chinese domestic steel prices are far below the United States and the European Union, the United States and the European Union has accused the Chinese government of giving subsidies to iron and steel enterprises, so that it is more competitive in the European and American markets.
                        In the highly politicized and absorbed in their own interests in the process of anti-dumping, some national or regional governments have come up with so-called evidence that Chinese government grant subsidies to its steel industry, including low cost financing and providing free infrastructure, as many economies of the government to do so, and the definition of China as a non market economy. Although some of China's iron and steel enterprises are state-owned enterprises, but a large number of Chinese iron and steel enterprises are not to enjoy the efficient operation of the subsidies of enterprises.


                        Copyright: Anshan Zizhu Heavy Steel Co.  www.nasimeharaz.com   Liaoning ICP No. 16010757 -1    
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