The Chinese economy

With its 1.4 billion strong population, China is the world’s second largest economy. The growth in the Chinese economy has been unprecedented. While the developed economies have lagged over the past two decades, China continued its growth trajectory. Incidentally, China has overtaken the U.S. to become the world’s largest exporter.

China and the steel industry

While the role of China in the global economy is not limited to one particular industry, for this series, we’ll discuss the role of China in the global steel market. Steel is produced in almost every country globally and is also a major item in the global seaborne trade.

The global steel industry has been reeling under the impact of a global slowdown, which started in 2008. The chart above shows the trend in the Chinese GDP (or gross domestic product) growth rates. As you can see, the growth rates have plummeted to single digits when they used to be in double digits a few years back.

In our analysis, we’ll discuss China’s importance in the global steel industry. We’ll discuss how China became the global engine for commodities. We’ll also analyze the current scenario in the Chinese economy. That the Chinese economy is slowing is no secret, so we’ll analyze the risks and challenges that confront the Chinese steel industry.

Steel companies in the U.S

ArcelorMittal (MT), United States Steel (X), AK Steel (AKS), Nucor (NUE), and Steel Dynamics (STLD) are the major steel companies operating in the U.S. We’ll analyze the impact that the Chinese slowdown had on these companies.

An alternate way to access the steel industry is through the SPDR S&P Metals and Mining ETF (XME). ETFs are cost effective ways to manage your investments. They provide investors with much needed diversification at low costs.

金属展-冶金展-2015广州巨浪国际金属暨冶金工业展览会-亚洲最大金属冶金展-巨浪展览-The 16th China(Guangzhou)Int’l Metal &MetallurgyExhibition