CHINA September 01 2016 6:27 PM
BEIJING (Scrap Register): China's top listed steelmaker, expects the crude steel consumption to drop to 680 million tonnes this year from 698 million in 2015, Reuters reported.
The forecast from Baosteel, comes at a time when China is stepping up efforts to slash a huge overcapacity that has boosted cheap exports amid slowing demand at home. China has promised to slash steel capacity by 45 million tonnes this year.
Overcapacity in China's steel sector has created tensions, with India, Australia and the United States imposing duties on Chinese steel exports amid allegations of dumping. U.S. regulators have decided to investigate into complaints from United States Steel Corp that Chinese steelmakers, including Baosteel Group, stole its secrets and fixed prices.
The listed unit, Baosteel, expects to ship out more than 3.4 million tonnes of steel products this year. The company recently reported higher profits for the six months to June, aided by cost-cutting measures. Baosteel has previously said it was restructuring, together with Wuhan Steel, amid wide expectations the two firms will be merged.