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Russian steel giant Severstal calls for global steel to drop production by lee ryan
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Russian steel giant Severstal calls for global steel to drop production by LEE RYAN
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Article Posted: 11/14/2013 |
Article Views: 138 |
Articles Written: 234 - MORE ARTICLES FROM THIS AUTHOR |
Word Count: 421 |
Article Votes: 1 |
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Russian steel giant Severstal calls for global steel to drop production |
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Business News,Finance & Investment,Manufacturing
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Alexei Mordashov, CEO of Russia's second largest steel mill Severstal appeal, hopes the global large-scale steel mills and governments to reach an agreement to reduce steel output and excess capacity. He said: "As long as we do not solve the problem of supply and demand of steel, the steel industry outlook would not be optimistic. Even worse is many steel enterprises will face bankruptcy or off. " "Steel overcapacity is a very serious problem if we do not solve this problem, the crisis in the steel industry 10-15 years ago will be repeated. At that time, the United States 1/4 steel enterprise go bankrupt." U.S. and European steel mills are facing with deficit, but Severstal is still profitable. Mordashov said: "Severstal can be profitable, we are fully capable to survive. However, our goal is not to survive, but to thrive, and Severstal's development depends on the prosperity of the entire steel industry. " Mordashov thought that the steel industry leaders and governments should reach an agreement to reduce capacity, as in 1994 the practice of treating the aluminum industry. At that time, the European Union, the United States, Russia, Canada, Australia and Norway have agreed to reduce aluminum production. According to their agreement, the global aluminum output fell by 6%. ordashov said that if the steel industry does not take similar measures, then the steel plant would be forced to lay off more workers and close the door. This trend is intensifying. The world's largest steel company Arcelor Mittal has closed steel mills in France and Belgium, and carried out layoffs. Meanwhile, ThyssenKrupp and Salzgitter also have decided to layoffs. Mordashov said: "We are facing a serious risk that the steel industry suffered huge losses and upheaval. If we do not pass an order way to restructure inefficient steel mills, so our budget and the customer will suffer more serious damage. " BCS Financial Group analyst, Oleg Petropavlovskiy said, although Mordashov's proposal is a good idea, but it is almost unenforceable. "Even the United States, Europe and Russia steel plant agreed to drop overcapacity, China is still a key issue." Petropavlovskiy said, "China exports a large number of steel products to worldwide" while the Chinese government is unlikely to drop capacity. As long as China does not solve the problem of excess production capacity, steel prices will not rise. Ontrend Industrial Limited is high quality Carbon Steel Pipe, Steel Wire and Tinplate supplier in China, if you have any need, please feel free to visit our website. http://www.beststeelhome.com
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