Thursday, March 25, 2010

China has 3 1/2 times the steel capacity of Europe.

Sometimes its the statistics mentioned almost as an aside that give you the most insight into how far things have changed. The one below is mentioned in a piece on how a global trade war was averted indicates to me just how far heavy industry has moved towards China.
China produced about 30 million tonnes of steel in the 1980s but in mid-recession last year it produced 568 million tonnes, 14 per cent more than the previous year. Steel analysts say China’s total capacity is close to 700 million, compared with European steel-making capacity of about 200 million tonnes.
That lead me to wonder what is current global steel production. Wiki as always provides an answer for 2008 in m tonnes.
  • World 1326
  • China 500
  • European Union 198
  • Japan 118
  • USA 91
  • India 55
That says a lot about where the world is heading to me.

6 comments:

KG said...

This is where the world is headed:
"How China has created a new slave empire in Africa
http://www.dailymail.co.uk/news/worldnews/article-1063198/PETER-HITCHENS-How-China-created-new-slave-empire-Africa.html

Simon said...

This is where it is heading.

“The U.S. and China are on a “collision course” over the value of the Chinese currency and investors are underestimating the disruptions for global financial markets, according to Nouriel Roubini”

http://www.businessweek.com/news/2010-03-25/china-u-s-are-on-collision-course-roubini-says-update1-.html

SHG said...

And where does this incredible Chinese steel industry get its iron ore for processing? Australia.

That says a lot about where "closing the gap with Australia" is heading to me.

sagenz said...

KG - Peter hitchens is a little inflammatory but there is no doubt China is stalking African and other semi developed countries primary productive assets. Chinese money for New Zealand farms just indicates how far we have gone down.

Simon - I dont share that assessment. The two economies are completely interdependent. China will balk as far as it can and will certainly make mincemeat of the current weak occupant of the White House but it would suffer more in a trade war.

SHG - Yes I had a similar thought. New Zealand has an opportunity to get part way there with the current close look at mining. But there is a big head start.

Simon said...

you might want to read this.

http://mpettis.com/2010/03/how-will-an-rmb-revaluation-affect-china-the-us-and-the-world/

Anyways the crisis that split open in 2008 is not over it is just starting.

WAKE UP said...

It pays to keep firmly in mind that China's attitude to the rest of the world is compeletely amoral, and no good will come of any of this.