China's Iron And Steel Industry And Market Economy Status

Is a global problem of excess steel capacity, China as the world's largest steel producer, is the focus of this issue. This question is more complex, according to China's accession to the World Trade Organization (WTO), submitted to the WTO, China in December 2016 is expected to get "market economy status (MES)", which will affect its trading partners to use trade laws against alleged dumping of steel products. This article presents data on China's iron and steel industry and for public discussion of these issues.

Production capacity

In the past ten years, China's share of world crude steel production increased steadily. In 2005, China's 31% per cent of total world production in 2015, this figure rises to 50% (see table 1). In the meantime, China's output has increased by more than 1 time, almost all incremental-475 million tons of total global production. Since 2009, the average annual growth rate of China's crude steel output to 6.8%, below the pre-crisis growth rate of 2006-2008 (13.1%), but still much higher than the world average (China), beginning in 2009, this data only as 3%.

Steel production capacity more quickly than production growth. In the past decade, world steel capacity increase of 1.017 billion tons, of which 78% (794 million tonnes) comes from China. Growth between China's steel capacity in the year 2005-2015 twice. In view of the capacity grew faster than production, capacity utilization declined. Since 2011, both China and the world has experienced four consecutive years of decline in capacity utilization. In the past decade, China's level of capacity utilization and the world, in the year 2015 than 70%. 2015 China's capacity utilization was 67%, compared to 89% 2006 peak data.