December 03, 2008

Investment in Chinese steel industry recovers

According to latest information provided by officials from National Development & Reform Commission, China’s total investment in iron and steel industry in first two months in 2008 was as high as CNY20.6 billion up by 30% YoY. The growth rate was 26 percentage points higher than it in the same period in last year.

Mr Wu Xichun consultant of China Iron & Steel Association said that besides the optimization of equipment structure, the organization structure should be optimized too.

He said “In order to develop big sized steel groups and to raise industrial centralization, we should improve product mix, increase high technology content and develop high value added products to fill domestic vacuum. Moreover, technology and manage mode in the company should be improved as well.”

He said that “All above are key challenges we must face in the new jumping-off point in iron and steel industry in China.”

Officials from Baosteel Group had expressed worries in the end of last year and had said “It is said that some small sized steelworks upgrade or rebuild outdated production equipment which should be eliminated, so new increased capacity is much more than closed down capacity.”