Brussels, 21/04/2015 (Agence Europe) - In comments published on Tuesday 21 April, eight associations representing steel interests in Europe, North and South America express their concerns to the Chinese government about its steel policy.
The eight associations - the American Iron and Steel Institute (AISI), the Steel Manufacturers Association (SMA) in the US, the Canadian Steel Producers Association (CSPA), the Mexican Iron and Steel Industry Chamber (CANACERO), the European Steel Association (EUROFER), the US Committee on Pipe and Tube Imports (CPTI), the Specialty Steel Industry of North America (SSINA), and the Latin American Steel Association (ALACERO) - believe that China's steel policy review of March still does not address the root causes of the trade imbalance as regards Chinese steel exports.
“China's 2015 adjustment policy does not meaningfully address China's steel overcapacity and enables continued government control and financial assistance over China's steel industry”, the eight associations complain in a joint press release.
“China's new policy continues to reflect a top-down, state-dominated approach to reforming the steel industry - thereby maintaining an environment where market forces do not apply. The policy continues to allow the Chinese government to intervene in the development of the steel industry and in the management and operation of individual steel companies - from the acquisition and supply of raw materials, to market entry, to the purchase and application of products by end users. This does not depart meaningfully from previous steel industrial policies in China and is not likely to resolve the serious challenges facing the Chinese and global steel industries. The only way to make meaningful and permanent reductions in excess steel capacity is to remove government support and subsidies from the industry and allow basic market forces to determine industry outcomes”, the associations state. (Emmanuel Hagry)