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Producers ask for import barriers and output cap

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Mainland steel-makers are calling on the government to restrict a flood of cheap imports and a limit on domestic production to stop prices falling and their losses getting worse.

In the first quarter, the mainland imported 3.58 million tonnes of steel worth US$1.6 billion.

The principal categories of imports included hot-rolled steel, cold-rolled sheets and stainless steel.

Of the imports, Japan, South Korea and Taiwan accounted for 2.04 million tonnes or 57 per cent, and Russia, Kazakhstan and Ukraine for 1.28 million tonnes with 35.9 per cent, the Economic Daily said.

The imports are a disaster for domestic manufacturers who since last year have faced over-capacity, high stockpiles and falling prices.

The government set a national target of cutting steel output this year by 10 per cent from 110 million tonnes last year.

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