Recently, the European steel industry is advocating stern actions on against the imports from China and to relax the environmental rules.

Anbound's research team is of the view that the tightening of the imports is merely a weak self-protection measure taken by the European steel industry. Following the weak global economy, particularly the slow-down of Chinese economy and its structural adjustment, the demands for steel will continue to drop and likewise the demands for iron ore product will remain low.

As China and other emerging market countries are undergoing economic transformation and structural adjustment, the structural demand, too, will change.

The demands for steel and iron ore products will not recover to the earlier level – even until the next round of economic recovery.

Therefore, the downturn in steel industry will last longer than the economic downturn.