STATEMENT ON JOINTLY SAFEGUARDING INTERNATIONAL STEEL TRADE ORDER
Recently, nine steel associations from America and Europe released a joint statement,
claiming that “the global steel industry is currently suffering from a crisis
of overcapacity and the Chinese steel industry is the predominant global
contributor to this problem”, and expressing their opposition to China’s
market economy treatment which will be automatically accorded in December 2016.
China Iron and Steel Association is
astonished to hear about it and hereby makes the statement as follows:
1. China Iron and Steel Association totally
disagrees to the practice and viewpoints of the nine steel associations from America and Europe.
Chinese steel industry, as a victim of trade protectionism, opposes to using the
excuse of steel trade to deny China’s
market economy status. We think such behaviour is
beyond the scope of industry association’s work and steel trade conflicts, as
well as regardless of the fact that the global steel market has entered into a
fully competitive period. In the scenario of serious difficulties facing the
global steel industry, the nine steel associations, without any prior
communications with China,
released the perfunctory statement, which isn’t helpful to finding solutions at
2. Overcapacity is a common issue in the
global steel industry restructuring, which requires the concerted efforts of all
the parties in the global steel industry. To simply attribute the difficulties
in one country or region to the Chinese enterprises is not responsible, nor is
beneficial for solving the industry difficulties in their own country or region
and promoting the smooth development of the global steel industry.
3. In the last few years, the Chinese
government, steel industry and enterprises have taken effective measures to
resolve overcapacity. The efforts they have made and the results they have
achieved can be seen by everyone. Since 2011, China has actively eliminated
obsolete capacities, and reinforced energy saving and environmental protection.
77.8 million tons of crude steel capacities have been eliminated and more efforts
will be made to reduce capacities. At the same time, Chinese steel mills have
actively cut their production in accordance with the market demand. From
January to October 2015, Chinese crude steel output has declined by 2.23%
y-o-y, a reduction of more than 15 million tons. It must be admitted that
resolving overcapacity is a long-term process. The US and European countries
spent more than one decade in resolving overcapacity in the 1970s and China
will take a certain period of time to do so as well. Chinese steel mills will
learn the successful practices and experience from their counterparts in the US and European
countries, to accelerate the process of resolving overcapacity.
4. The economic globalization has integrated
the steel industries of different countries in the world. China does not
encourage steel exports and Chinese steel mills produce and sell their products
in the fully competitive market. We have noted that the increasing Chinese
steel exports this year have brought about some impacts on some countries and
regions, and we have tried to make some adjustments. However, it can not be
denied that the increasing exports are mainly due to the market forces and
competitiveness and Chinese steel products are popular in the export
destinations, bringing about benefits for many consumers.
5. China Iron and Steel Association and
Chinese steel mills always give high priority to the issues arising from steel
trade. On the one hand, we actively strengthen industry self-regulation and
further regulate the export order; on the other hand, we seek proper solutions
through ways of communications, dialogues, negotiations, exchanges and cooperation,
etc., which have achieved better results. We hope the global steel industries
could further enhance communications and exchanges, reinforce mutual understanding
and cooperation in order to jointly safeguard the international steel trade
order and promote the smooth development of the world steel industry.