- China’s shrinking appetite for steel will negate promised capacity cuts
- European producers cannot expect competition from cheap Chinese imports to relent
- Chance of trade row rising as Beijing will prioritize internal stability
The glut of Chinese steel has contributed to a huge drop in prices on the global market, leaving mills around the world struggling to survive. In April 2016, 40,000 Germans demonstrated against the threats to the country’s steel industry, while Tata Steel Ltd. put its British steel plants up for sale.
In early May, the European Parliament voted in favor of denying China “market economy” status under World Trade Organization rules. This would allow the EU to take steps to counter perceived dumping by Beijing.