Steel Industry News
Problems of China steel industry
Thursday, 15, April 2010
Sky-rocketing iron ore prices have also brought the problems of China's steel industry to light. Low centralization, overcapacity and high storage rates have been haunting the sound development of the sector.Wang Chaojun, a private steel mill owner, says the most difficult task will be controlling costs, given the unpredictable market price of products and relentless price increases of raw materials. From his point of view, steel makers have seen the end of colossal profits and the sector needs restructuring.
Wang Chaojun said, "The steel industry wants to be regrouped because it is inevitable. There are too many private mills and energy consumption is very high. We think the industry can only revive through companies merging and energy saving."Low centralization, overcapacity and high storage rates have been clouding the industry. In 2009, the five largest steel companies only accounted for 29 percent in terms of centralization, far below international levels.
