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[Summary description] There is an idiom in China called "misfortunes never come singly", which is used to describe the difficulties encountered by China's steel industry since May, which may not be an exaggeration. The EU regulatory agency released a report last week stating that grain-oriented silicon electrical steel originating in China and other countries was found to be in the EU

There is a Chinese idiom called "misfortunes never come singly", which is used to describe the difficulties encountered by China's steel industry since May, and it may not be an exaggeration. The EU regulatory agency released a report last week stating that it was determined that grain-oriented silicon electrical steel originating in China and other countries was dumped in the EU market. 28.7% provisional anti-dumping duty. The US media also reported a few days ago that some executives of US steel companies complained that the influx of Chinese steel at "unfair prices" has suppressed the market space of US steel companies. The executives called for barriers to "made in China" steel. The request is believed to have a high chance of official U.S. support.

In fact, steel is not the only Chinese product that has “influxed” into the U.S. market recently. According to Chinese customs data, from January to April, China's exports to the United States increased by 9.2%, while imports from the United States fell by 11.5%. Affected by this, China's current trade surplus with the United States expanded by 29.8%. According to the analysis, the main reason for the above-mentioned expansion of the trade deficit is the continued appreciation of the US dollar. However, the U.S. took the opportunity to seize the iron and steel item, making the latter a "taken advantage". Also due to exchange rate factors, China's exports to Europe declined from January to April due to the "diving" of the euro. However, since the European Union filed the case in August last year, the time frame of its anti-dumping investigation occurred earlier, which made the already difficult situation of Chinese steel in the European market even worse.

"Whether it is the United States or other countries, we all oppose various measures against Chinese steel products on the grounds that China's steel (2342, -19.00, -0.80%) export growth is relatively fast." Talking about this situation, business Shen Danyang, spokesperson of the Ministry of Foreign Affairs, told reporters from China News Agency. Shen Danyang believes that the rapid growth of China's steel exports should first be attributed to the large market demand in Europe and the United States, followed by the price advantage of Chinese products. Europe and the United States believe that the serious excess capacity of China's domestic steel industry is the main reason for its low-price dumping to foreign countries. Regardless of whether the above logic is right or wrong, the problem of overcapacity is indeed a major problem plaguing China's steel industry. According to estimates, in 2014, the utilization rate of China's steel production capacity was less than 70%, and usually a capacity utilization rate of less than 75% can be called excess capacity.

This can't help but remind people of the photovoltaic frictions between China, the United States and China and Europe that were raging a few years ago. Due to the large-scale production before the financial crisis, China's photovoltaic industry once experienced obvious overcapacity. Under the heavy pressure, some companies conducted vicious bidding to snatch overseas markets, which provided an excuse for the United States and Europe to launch high-frequency and large-scale anti-dumping on this product. Affected by this, the vitality of the photovoltaic industry has been greatly damaged. In order to avoid repeating the mistakes of photovoltaics, Chinese officials are committed to reducing and digesting steel production capacity.