National Bureau of Statistics of China released the August data. According to them in the past month it was produced 66.94 million. Tons of steel in the country. This figure is lower than last year's result by 3.5%. For 8mesyachny period of 2015 the volume of production amounted to 543 million. Tons. The result is lower than the previous year by 2%. The number of excess production in the PRC is not falling, which is confirmed by statistics. Rental price on the domestic market of the PRC decreased to a minimum 20letnego. In this August compared to July, steel production increased by 1.7%. Some decrease was marked in Hebei Province. And yet it was due to a forced stop some metallurgical industries. The reason was the Emerging celebrations in honor of 70-years anniversary of the end of the war IIMirovoy.
The main problem of China's steel sector — a small demand for the products. The reason is to reduce the rate of economic development of the country. Experts also say the possible errors in official data showing the country's GDP growth. According to the statistical results for the January-June it is 7% — and may be inflated. In any case, the power consumption in China has increased by 1% relative to the 2014 schedule. For 8mesyachny period of increasing investment by 10.9% compared to last year's results. For the first 6 months the figure was 11.2%. A year ago, it exceeded 18%. August production volumes increased by only 6.1% compared to the results of August 2014. Investments in real estate showed an increase of 3.5%. As noted by representatives of Alibaba Group Holding Ltd, the consumer sector and there is a decline rates.
As a result, we can say that the end of recession in the economy has not yet been observed. Accordingly, in the near future can not count on growth in market demand for steel products. Therefore, Chinese companies will continue to increase export volumes. And the price of Chinese products in the global market will show a further decline.
Meanwhile, the continuing struggle against the increasing volumes of Chinese imported products in all possible ways. Recently, the Ministry of Commerce of Thailand imposed antidumping duties prior. They touched a low carbon wire rod produced in China, and have made 17−16−34,44%. Action tariff is designed for 4 months.