Can China meet its target to cut steel overcapacity?
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Table of contents
- Executive summary
- The size of China's steel overcapacity problem
- The closure target and its impacts
-
The challenges in reducing overcapacity
- Avoiding financial risk, particularly for private lending and trusts
- Softening the blow of massive job losses
- Handling SOE and private steel companies fairly
- Reducing local government resistance to capacity closure
- Conclusion
Tables and charts
This report includes the following images and tables:
- Overcapacity calculated assuming a normal utilisation rate of 85%
- Margin will not significantly improve after 150 Mtpa closure
- Market forces at work: lower margins lead to more closures
- Massive financial liability when mills are shut down (CISA members, RMB billions)
- Net profit margins of CISA members (majority SOEs) and private steel companies
What's included
This report contains:
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