China reduces metallurgical production and increase exports
According to Chinese government statistics, in May this year, crude steel production increased by 1.5% to reach 69.95 million. Tons versus April. Compared to the same period in 2014 results below 1.7%. In 2015, for the period from January to May inclusive 340.17 million. Tons of steel were produced in the country. The result shows a decrease of production by 1.6% compared to last year's same period. In May, the volume of daily production reached an average of 2.256 million. Tons, indicating a decrease relative to the April data. In April, the daily figure was 2.297 million. Tons. True, it is necessary to take into account the number of days affected the figures.
According to experts, the Chinese iron and steel enterprises in late May began to purposefully reduce the volume of steel output. The main influencing factor was the decline in demand for the metal rolling and stopping foreign markets for exports from the PRC. Falling demand in the domestic market, given the general decline of economic growth. As a result, Chinese steelmakers were forced to activate the supply to the global market with deliberately reduced cost. The volume of China's exports of finished steel for the first five months of 2015, reaching 43.52 million. Tons increased by 28.2% compared with the same period in 2014.
For some time the value of the Chinese metal including its delivery serves as a reference guide. When negotiations are actively using it, and suppliers and consumers, as reported by the representatives of the British analytical agency MEPS. Prices Chinese manufacturers are buyers a powerful argument for knocking down the cost of goods. Asia is also focused on Chinese prices of steel products in respect of treating them as a reference.
According to the statistics over the last 5 years, annual exports of Chinese steel finished products increased by almost 65 mln. Tons. Compared with 2009, when the figures were 17.2 million. Tons, in 2014 exports reached a level of 81.8 million. Tons. The vast quantity of exported products were sent to Asian countries. During the period 2009−2014, the total number of exported steel products from the PRC has increased from 3.2% to 10.2% of the total volume of the country's steel.