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Tangshan Songting Iron & Steel will stop its work

Chinese Iron and Steel Works Tangshan Songting Iron & Steel will stop. This fact is reported by Western media. Production Annual capacity of the enterprise reaches 5 million. Tons. Located plant in northeastern China, the city of Tian-Shan. Tian Shan is called metallurgical informal capital of China. Its population of 8 million. People in 2010. And this city took the world leader in the number of rolling and steel mills. They number several dozen. The total annual capacity of enterprises amounts to approximately 140 million. Tons. It is about ½ of the index of Hebei.

According to the Reuters news agency to stop the outdated power facilities are prepared with the year before. In 2013, the urban elite was accepted certain obligations. It included the conclusion of the work of 28 million. Tons / year capacity during 2013−2017 years. Assessment of the beginning of this month held consulting company Custeel. According to them during the year it was closed about 15 million. Tons. However, until recently stayed small production. Termination of the activity of Tangshan Songting Iron & Steel was not expected. The main products of the plant — of billets, hot rolled coils. In explaining such a sudden stop, the Chinese sources point to the unfavorable situation of the steel market. The first large steel mill in China shuts down for this reason.

According to Chinese and foreign experts, this is only the first bell. In the near future the plant will follow the example of other large metallurgical enterprises of China. The cost of rent in the domestic market persistently declining. It is doubtful that the incipient recovery in demand in the near future. Investors are afraid to invest in real estate. Continued reduction of new industrial capacity. Lack of funds has led to a reduction in public investment in infrastructure projects.

Sinchuan Li, deputy secretary general of CISA, announced its own forecast. In accordance with production of steel in China in 2016 will amount to 783 million. Tons. In comparison with 2015 will drop by 2.9% from 806 million. Tons. steel consumption of 668 million. tons will fall to 654 million. tons. fall rate will be 2.1%. Apparently, steel exports will also go down. For 10mesyachny period of 2015 its volume reached 92.1 million. Tons. By the end of the year rates can exceed 110 mln. Tons.

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