Nucor CEO: Doesn't Expect Consolidation in China's Steel Industry
First Published Wednesday, 20th June 2012 04:49 pm - © 2012 Dow Jones
NEW YORK--China's steel industry isn't likely to consolidate and eliminate inefficient output anytime soon, Nucor Corp.'s (NUE) chief executive said Wednesday.
China, producer of more than half of the world's steel, is widely thought to have some inefficient steelmaking capacity that is competitive only because of government support. U.S. trade groups have argued that much of the Chinese steel sent to the U.S. violates international trade laws.
Dan DiMicco, CEO of Nucor, the leading U.S. steelmaker, said the Chinese government has little interest in opening up its steel market to the type of international investment that would spur mergers and the shedding of unprofitable facilities.
"If they wanted consolidation to happen, they'd let the world come into their steel market and help make it happen," DiMicco told reporters after delivering a speech at the Steel Success Strategies conference in New York.
Such a streamlining in China would require a firm government mandate, DiMicco said. "But they don't want that because [steel] is a strategic industry."
Asked after his speech by a China-based conference attendee whether DiMicco would like to visit Beijing, the longtime chief executive said no.
"I have no desire to go to Beijing, China," he said. "I just want you to behave yourself."
Write to Matt Day at firstname.lastname@example.org.