Steel industry is not as good as hoped
It is known to all that China is the largest producer of steel in the world. And as the country's economy has slowed down, its capacity has vastly outstripped demand, which led Chinese producers to sell into global markets. By some accounts, China's exports are nearly as large as Japan's steel production -- Japan is the second largest steel producer in the world. However, the steel industry isn’t as good ad hoped and expected in 2015 in China. The price of steel pipes and tubes is even cheaper than vegetables, which is hard believe in three years ago. Individuals and real estate agencies swarm to build houses and buildings with the cheapest steel products. It is said it may save at least 60% compared with three years ago.
Chinese steel is exported around the world, not just to one particular market. So it may cause invisible pressure to other countries and markets. And those markets are likely to start exploring new markets and services in response to their own Chinese import pain. The current condition of the China steel industry is dismal, with low profits, low capacity utilization and dim prospects for new private investment, either foreign or domestic. As a steel pipes trading company, we make every effort to enhance our ability and service range to meet your demands.
While pointing out that a move from the current stressed state to realising the sector's full potential will not be easy, the market also presented a road-map for policies and practices for government and industry to ensure its long term growth prospects. Facing the industry, there is no straightforward solution to the complex global challenges. In the coming 2016, we will provide same quality steel pipes to you as we have done in the past 10 years.
