Insight
Industrial downsizing: How can China address overcapacity in steelmaking?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
According to Wood Mackenzie's forecast, China's crude steel production will fall from 1,018 Mt in 2022 to 798 Mt by 2050, leaving up to 220 Mt of previously operating capacity sitting idle or being shut down. This idle capacity raises the question: how will China deal with this overcapacity? Through this insight, we critically examined different strategies including production curbs, capacity swaps, supply-side structural reforms, industry consolidations and export restrictions – necessary to resolve the industry’s pain point of steelmaking overcapacity.
Table of contents
- Executive summary
- Overcapacity in the Chinese steelmaking industry
- Strategies to address steelmaking overcapacity
- Conclusion
Tables and charts
This report includes the following images and tables:
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China's GDP growth and population forecastChina's steel demand and supply forecast
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China's scrap pool utilisationSteelmaking costSteel marginsBOF and EAF productionChina's VAT rebates for export steel products
What's included
This report contains:
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