Due to falls in industrial output and exports growth, China’s economic growth GDP in the second quarter fell to 7.5% slower than the 7.7% in the first quarter.

Energy and raw materials prices declines, companies’ operation difficulties, and financial market volatility will bring uncertainty for the economic rebound. But the acceleration of urbanization and the recovery in consumption and exports will support the economy to rebound at a mild pace.

In view of the central government’s determination to weed out excessive capacity, not only in steel, but also in cement and aluminium smelters, and to boost economic restructuring it is widely believed that the central government is unlikely to introduce further stimulus policies in the short term and overcapacity reductions and deleveraging will become the focus of the economic rebalancing in the second half of the year.

Source: China Metals e-mail chinametal@xinhua.org