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Steel Market in China Impacted by Pollution Regulations

New regulations imposed to reduce the impact of pollution caused by the steel industry have resulted in the lowest prices for steel in 20 years. Due to these new guideline, Chinese steel makers – including top producers – have drastically cut the level of production and some have even shut their factory doors completely.

The reduction of steel production is a direct response to the amount of smog these companies are producing as well as most having an inventory that is overcapacity. The effects on the environment are easily seen throughout the country, and having too much product is greatly decreasing the price of steel throughout the industry leading to more and more debt being acquired. Now companies are being forced to undergo renovations in order to meet stricter guidelines to reduce pollution throughout the country.

Fortunately while companies are cleaning up pollution and reducing their inventory most are still able to cover their production costs, leading to no money being lost – but none being made either. And with so many steel production companies forced to make drastic cutbacks, it has led to an extremely low steel price per ton.

JD Fields Construction Group

JD Fields Construction Group

Prior to founding J D Fields & Company, Jerry Fields gained decades of experience in construction products and piling applications managing equipment rentals, material sales, and product operations. Coupled with his oil and gas experience, Jerry built a rock solid foundation of industry knowledge and relationships that allowed him and his partners to start the company in 1985. Incorporated in Houston, Texas, JDF quickly diversified into multiple construction markets and applications. Today, it is a premiere international source for natural gas pipe and piling products. Strategically positioned at the Port of Houston corridor, our flagship stocking facility has 40 acres of laydown area with steel processing and fabrication capabilities. We carry more than 50,000 tons of pipe and piling inventory throughout the states to serve North America, Canada, Mexico, the Caribbean and other international markets.

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