Tag Archives: steel

Summary: China’s excess capacity is one of the most formidable challenges the China and the world face. Unexpectedly, China’s steel industry reported a profit in H1 16. M&A for industry rationalization and foreign markets seem to be the main ways China is trying to address the excess capacity. Americans have a saying about an 800-pound gorilla in a room.  It refers to a person or organization so...

For various reasons, well beyond the scope of this short note, China has amassed huge industrial capacity, well beyond its ability to absorb.  In part, that is one of the challenges that the “One Belt One Road” addresses.  Export the spare capacity by building infrastructure, networking east and central Asia (included parts of the former Soviet Union and the Middle East. Even that long-term project does not appear sufficient to absorb the existing surplus capacity.  Many US and European...