The new company Baowu Steel pledged to reduce crude steel production by approximately 4.7 million tons in 2016 and 1.4 million tons throughout 2017.
Initially, Japan was hoping for price hikes in steel, driven by rising demand in the automotive segment and restricted export rule. However, in the next few months it will be a challenge for Japanese steelmakers should China fail to curb its excessive steel production.
Overall, the outlook for the domestic Chinese steel market remains uncertain. With higher import tariffs and expected growth in the automotive, building and railways segments, metal producers in the Asia-Pacific should continue to boost efficiency and invest for growth. Worldsteel estimates that in 2018, global steel demand will continue to pick up by 0.9% year-on-year to 1, 548.5 million tons.