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Over Capacity of Die Casting Die Steel Should be Faced
Posted: 04/23/2016 06:23:28  Hits: 68
Facing with over capacity of die casting die steel, international community should eliminate abnormal trade barrier, making efforts to build up a fair, just and predictable international market environment and opening world economy. 

Since the middle of April, India launched anti-dumping and anti-subsidy investigation on hot-rolled coil, stainless steel plate and other steel products originated from China. Before that, EU and the U.S. frequently launched trade remedy investigations on Chinese steel products in the name of anti-dumping. Can figure out over capacity of die casting die steel through seeking excuses and carrying out anti-dumping and anti-subsidy measures on Chinese steel products?

Over capacity of die casting die steel is a global issue caused by worldwide total demands reduction. Recently, global economic recovery is weak. Infrastructure, industrial construction and household consumption show the trend of decreasing. Relation between supply and demand on market has been changed a lot, resulting in weak effective demands for global steel. Data showed that global output of crude steel in 2015 was as high as 1.6 billion tons. OECE (Organization for Economic Cooperation and Development) considered that 600 million tons belonged to over capacity. The organization predict that steelmaking capacity in Middle East, Africa and Latin America will grow by 50%, 20% and 10% respectively, by 2017. At the same time, cost of steel industry in regions such as EU on resources, environment and laborer will still stay at a high level. Common or low-end materials will have narrow profit space, lacking of competitiveness around the world.

Under such situation, any acts such as harming neighbor and criticizing each other cannot only help figure over capacity of die casting die steel and development issues of steel industry, but also forms barrier for the forming of normal international trade order. It has been proved that trade protectionism can only bring double-lose. Some nations or regions should not use over capacity and high cost as an excuse for putting forward trade protectionism. They should take active measures to meet own national conditions and development. China is always opened to all of nations. China also expects that all of nationals are opened to china. For any restrictive measures of trade protectionism, China must defense actively, following relative trade remedy rules of WTO, maintaining legitimate interest of Chinese enterprises and striving for fair and just treatment.

To truly figure out global over capacity of steel, power should be constantly applied on supply and demand at the same time. As a steel producer, consumer and trader, China should pay high attention and try effort to neutralize its own over capacity of steel. In the early of this year, China clearly put forward that strictly prohibited steel industry from newly increasing capacity. And China also promises that use 5 years to reduce again the capacity of crude steel to 100 million to 150 million tons since this year, on the base that weed out the backward steel capacity for more than 90 million tons, fully showing the determination of Chinese government to eliminate over capacity. One Belt and One Road put forward by China strengthens connectivity and construction of infrastructures in relevant countries and regions, effectively driving demands for steel. 

Meanwhile, China is also always advocate for using trade remedy measures carefully, restraint and canonically. China is willing to sincerely communicate with every member of WTO through mechanism of conversation and negotiation and encourage that Chinese steel enterprises are in pursuit of developing together and neutralize trade friction with foreign enterprises through trade, investment and technical cooperation. In 2003, China and Europe faced with trade friction of photovoltaic whose amount of money was as high as more than 20 billion dollars. The case was figured out completely though multi-level cooperation of government, industry and enterprises. Flexible attitude and intelligence for solution shown by China and Europe were worthy for praising.
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