Growing China Steel Industry Is Raising The Concerns

The growth in steel production in China can be seen only as a mindless and overstated response to the growing demand in last few years. While the development of overcapacity in an uncertain and erratic market cannot be avoided, the way Chinese steel industry is rising is certainly not making any sense. Like many other countries, China is now focusing on raising its stakes on global market. The steel companies have to make sure that overproduction, especially by China's producers, does not affect prices. The decrease in demand could cast a negative effect on the prices of steel in world. Reduction in China's steel demand would flood the overseas markets with an excess output. It would pressurize the steel prices and margins around the world. Support of Chinese governm View the rest of this article