China's National Statistics Bureau announced the results on the development of steel in the country. In accordance with these production in November reached 63.32 Mill. T. Compared to November 2014 results decreased by 1.6%. In an average day production volume reached 2.111 million. Tons. Since last November, the smallest figure. According to the World Steel Association for the 11-month period of the PRC producers have released 738.4 million. Tons of steel. Compared with the same period last year, figures have fallen by 2.2%.
Demand for steel products in China this year is reduced, since the decline observed in the construction sector. Also, there is a decrease in the level of investment in basic capital. Fall and output growth. Since the late nineties, the intrinsic value of steel products fell to its lowest level. Morgan Stanley analysts said that now more than 60% of Chinese companies operating at a loss. However, the stop of production capacity has been slow. Excessive amounts of products at the same time go to the foreign market. For 11 months the volume of exports of Chinese steel amounted to 101.8 million. Tons. As observed growth of 21.7% compared with the period in 2014.
Statistical Agency Chinese say about the sudden growth of industrial output in November 2015. The increase was 6.2%. Foreign experts in this case relied on indicators at the level of 5.6−5.7%. Perhaps such a jerk to some extent restore the Chinese steel sector. However, the decline in capacity utilization again postponed ago. Sami Chinese manufacturers account for the November jump presence of seasonal factors. Stopping the production volume will be limited. At the same time the spot price of iron ore fell by 25% in a couple of months. Accordingly decreased and the cost of production of steel in China.
Many experts believe that China's steel sector will continue to work. Rolled low cost makes these activities unprofitable. However, the support of the authorities and banks while saving the situation. However, the crisis gradually affects the volume of production, which are slowly falling. Recently, incoming information from China indicates a stop enterprises. In particular, the work stopped Tangshan Songting Iron & Steel. Its production annual capacity is 5 million. Tons. Over the last few months of business were forced to spent a lot of distribution companies. Others reduce stocks. The number of unsold products continues to grow.