China was pointed out to promote the growth of global steel production U.S. and European production fell


???????? July 22 Reuters news, China’s major steel producers promote the rapid growth of steel production and drive the growth of global crude steel production. Compared with last June, crude steel production increased 1.9%, reaching 132 million tons. However, the European andU.S.steel production significantly reduced.

The World Steel Association said thatChinais the world’s largest alloy consumer, production in June was 64.7 million tons of steel and there was an increase of 4.6% comparing with the same period last year. European Parliament analyst Jeremy Platt said, it is hard to say whenChinawill be significantly reduced output. So far, some Chinese steel mills have gone bankrupt, but we should be positive from the long-term perspective to look at the problem.

Meanwhile, he said the data according to Chinese industry bodies, comparing to last year in which Chinese coal and steel production fell 4.5% in the first ten days in July. Lower production due to seasonal reasons, but this measure is not enough to ease oversupply situation.

Reuters also said thatAsiais an area where is significant overcapacity in steel production, while other areas are trying to balance the output in response to weak demand. Global steel production was nearly 790 million tons in the first half of 2013, with an increase of 2% compared to last year. In addition, the Asian production increased by 5.5% which is far more than offset the negative growth in other regions.

?To better cope with the international market,China’s steel industry should improve the quality of steel products, rather than blindly increasing production.

Furthermore, the EU has changed its policies which lead to a hard hit of the steel demand, shrinking 3.5 percent yield. German and Italian¡¯s were reduced by 2.2% and 10.3% of the output.U.S.yield were reduced by 0.2%. Recently, a trade disputes with theUnited Stateshopes to revive some steel product prices, and can support the production within the next few months.

Reported that, although theU.S.steel market is the most advantage of seasonal in the first two quarters and but steel prices recently have begun to rise. Pratt said, even though some of the economic situation uncertain, theU.S.steel market is still sluggish so far.

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