China has always strived to be a leader in practically all spheres of production, including steel production. According to statistics, in recent years, the volume of steel production in the People's Republic of China has acquired tremendous positive dynamics and, in comparison with the last decade, has grown by almost 313 percent, which simply cannot fail to attract attention.
In September - August 2013, they broke all records, amounting to 66.8 million tons. And according to the results compiled by the China Iron and Steel Association (CISA), the chief statistician of China in the field of metal production, the annual size of metallurgical production amounted to 521.84 million tons of steel, an increase of 7.8 percent of the annual production turnover.
The success of Chinese steelmakers may be their biggest problem
According to the results of the assessment carried out by the Xinhua news agency, in recent years, China, which has not only significantly reduced the turnover of steel production, but also managed to occupy new positions, which has significantly expanded the size of production capacities. A prime example of this event is the sharp decline in steel market prices in China, which even created a slight oversupply. The result of this leap was quite tight control by the state, the purpose of which is to eliminate excess capacities and intensify this type of production as OEM production.
Considering all the economic factors that characterize the economic composition of steel production volumes, we can say that production in China, for the first time in many years of post-industrial society, faced the global problem of exceeding consumer volumes in production volumes, which in turn may not only critically lower steel sales prices, but and collapse the entire market associated with its sale and implementation.
But despite all the efforts proposed by the authorities, with the aim of cutting off excess and unnecessary capacities, sometimes even in the most unpopular ways (liquidation of production facilities, imposing a high tax, closing blast furnaces), this practically did not give any result, except that the country managed to avoid huge collapse of its entire market.
Today, China still holds a leading position in the global steel production market, and despite everything, it is constantly increasing its volume.
