China, Europe and the global steel crisis

British steelworkers protest in London as Chinese imports force mills to close
May 25, 2016: British steelworkers march through London to demand the government take action to help the industry by curbing Chinese imports (source: dpa)
  • 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.

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