The Chinese market steel in May will remain weak

Shanghai Daily reported that the market has become weak in China next month, although, traditionally, this is the peak of the consumption season. According to the Chinese Metallurgical Association, despite the fact that, at this time of the year, favorable conditions for the sale of its products are usually created for the steel industry, the demand remains uncertain.

In this regard, the general performance of the sector begins to fall, determining the weak economic growth in the first quarter in China. In general, economic growth has slowed up to 7.7 percent in annual calculus, compared with 7.9 percent in the fourth quarter of last year. In March, 45.3 percent of metallurgical companies were weak due to rigid competition among industrial enterprises, while excess production began to grow in the first quarter. However, China retained its position as the largest manufacturer steel in the world.

The Association said: "This means that China’s economy is faced with many difficulties that he copes stably." According to the National Statistics Bureau, the production of steel remains at a high level. The production of steel in China reached 191 million 890 thousand tons in the first three months of the current year, increasing by 9.1 percent compared to a year earlier. The volume of cast iron production increased by 7.6 percent to 178 million 230 thousand tons, and the rental production jumped 12.3 percent.