Surplus metallurgical capacity in China is beyond imagination - CISA

China's steel industry is facing extremely difficult market conditions amid overcapacity, economic restructuring and mounting financial problems in the metals industry. These problems cannot be solved in the short term. This was announced by the Deputy Secretary General of the Chinese Association of Ferrous Metallurgy CISA, reports ukrkonditioner.kharkov.ua .

"Overcapacity in China, the world's largest steel producer, is beyond imagination," said Li Xingchuan.

On the territory of China in 2013, according to CISA estimates, there were more than 300 million tons of excess production capacity in the metallurgical industry. This is equivalent to double the level of steel production in the European Union.

According to the Association, China's imports of iron ore in 2014 will increase by 6 percent compared to 2013, which means a slowdown in growth by 4 percentage points from 10.2 percent last year. The demand for steel will be 3.2 percent higher than last year and will reach 715 million tons. At the same time, steel production will grow by 3 percent - up to 810 million tons.

On the other hand, according to a CISA representative, after the announced reduction of metallurgical capacities in Hebei province by 40 million tons this year, the local government will have to employ more than 100 thousand workers employed in these industries today.