A large group of domestic steel production has just issued a statement calling for urgent action to deal with surplus steel. China steel price is being blamed for losses distort international markets.

Joint Statement of the US, Canada, the European Union (EU), Japan, Mexico, South Korea, Switzerland and Turkey, has called for "continued international dialogue" to remove "the policy squeeze market distortion "and to promote greater transparency in the global steel industry, the BBC reported on 20/4.

Representatives from over 30 countries met in an international conference in Belgium on 18/4 to find countermeasures of oversupply of steel, but also come up with the conclusion that, to tackle production excess quickly and organized. US publicly criticized China and declared Beijing could face trade sanctions if not cut steel production. But China denied allegations that they subsidize steelmaking companies to dumping. Conference ended without achieving any formal agreement.

Steel manufacturing industry of China are constantly expanding. In 25 years, the scale of the country's steel production has increased 12 times. Meanwhile, EU output fell 12%, while the US is at rest. The driving force behind the development of the steel industry dizziness Middle Quocla economy grew 2 numbers in the past few decades. But economic development is slowed severely affected domestic demand in the country. Therefore, China Steel sold the international market with extremely low prices, even below cost. Consequently, steel makers in other countries increasingly difficult to compete. However, Xinhua has said, blaming China caused problems for the global steel industry was "limp and justify protectionism".

19/4 Today, China said its crude steel production hit a record in March as rising profits has encouraged producers to increase production. As domestic demand is slowing, Chinese manufacturers are looking for more export markets. This led to many countries criticized the Chinese steel producers are dumping products abroad, that they not only sell cheap thanks to lower production costs, but also selling for less than the cost of production .

According to analysts, while others complain of cheap Chinese steel are causing many of them to bankruptcy now, China itself is also facing serious problems. The boom-scale production in recent years shows that if production cuts will lead to the loss of many jobs and increase the risk of social unrest in the country. Therefore, it is unlikely that China will be significantly reduced production, and if domestic demand does not increase, cheap Chinese steel will affect the global market.

Indian steel company Tata recently announced it would withdraw from the UK market by the influx cheap steel, mainly from China. Earlier this month, India opened an investigation into the ability of steel from six countries, including China, Japan and South Korea, are being dumped. Last week, more than 40,000 workers at German steel production to the streets to protest the Chinese steel being dumped, leaving them at risk of losing their jobs. China is the largest steel producer in the world, providing 822 million tons per year.

According Truc Quynh

Pioneers