Issue link: https://read.dmtmag.com/i/319134
I DA U N I V E R S A L M ay -J u n e 2 0 1 4 15 Trends continued on page 17 TRENDS AND TIDBITS Bloomberg reported that China's slowing economy and tougher government anti-pol- lution eff orts are taking a toll on its steel mills, rattling the world's biggest producer of the alloy and fl ashing worries of a potential downturn in the global iron ore trade. e result is 2% of steelmak- ing capacity will be eliminated this year, according to China's largest industry researcher. At the same time, steel output will slow to a growth rate of 3% from 7.5% last year. e biggest losers may be older, private mills the gov- ernment considers to be inef- fi cient and some of the greatest sources of foul air causing out- rage throughout the nation. Premier Mr. Li Keqiang declared war on pollution at the nation's top legislature in March, sending a signal that the state isn't willing to continue to sacrifi ce clean air for rapid growth. Moody's Investors Service said that as smaller mills are squeezed out, bigger ones, includ- ing Baosteel Group Corporation and Wuhan Iron & Steel Group, will win market share. Mr. Hu Muzhong, GM of Central Minerals in Hong Kong, said, " e government aims to wash out small, polluting produc- ers, and it wants a reshuffl e of the steel industry." Mr. Mike Henry, president of the marketing and technology Premier Mr. Li Swaps Steel Production for Cleaner Air in China A man exercises in the morning as he faces chimneys emitting smoke behind buildings across the Songhua River in Jilin. Only three of the 74 cities monitored by China's own environmental authorities measured up in terms of air quality last year. unit of BHP Billiton Limited, said, " e anti-pollution moves will drive consolidation toward more effi cient steelmaking capac- ity in China." Mr. Xu Xiangchun, chief analyst of Mysteel, said, "Mysteel estimates there are more than 300 mills that have blast furnaces that consume iron ore. is year, as many as 10 plants, with annual capacity of as much as 10 million metric tons, may close or scale back operations. at's enough to create panic in the market. China produced a record 779 million tonnes of crude steel last year." ● www.steelguru.com, April, 2014