The global steel price endures a continuous decline due to the overcapacity impact of global steel recently, which makes so many steel operators couldn’t afford. The index of Chinese domestic steel production in April is more than 10 percentage points, which making a substantial increase in steel production, and then resulting in steel prices decline. The demand of steel is insufficient to support such a large surplus of steel, so the global steel industry is facing the "Waterloo." Now the sentiment of business-to-bearish in steel market continued to spread, so that leads to steel market trading anemically. Europe imputed the problem of European plight of steel industry to China; they thought it was the lack of response efforts of China on the production and export of steel. Chinese Foreign Ministry spokesman responded that the steel overcapacity reflected a global problem, and China had taken early action and measures to resolve the problem for showing China's determination to solve the surplus of steel production.

 

According to foreign media reported, due to the impact of decline of global steel prices, the Spanish carrier is also facing the unsellable dilemma. The scrap recycling businessman has no interests in this carrier. The global steel overcapacity problem can not be mitigated in the short term; it also means that steel prices will continue to follow the downward trend in May. The decline of steel price also resulted in market trading anemically, and in order to liquidation timely, many businesses cut the steel prices which will also further accelerate the decline of steel prices. Whether the steel prices can return, it mainly depends on whether the insufficient effective demand caused by the global economic recession can be effectively addressed.