Reuters cited Mr Luo Bingsheng vice chairman of the China Iron and Steel Association as saying that China is expected to produce 565 million tonnes of crude steel in 2009. That would represent 13% growth from last year output of about 500 million tonnes.
China crude steel output totalled at 472.5 million tonnes for the first 10 months, representing a 10.5% growth from a year earlier, as the result of the expansion in steel capacity which is seen to exceed 700 million tonnes per year in 2009.
Mr Luo also said actual steel demand in the country would rise 18% this year to 549 million tonnes, indicating a surplus supply in the domestic Chinese market, while exports have been weak.
He said that “Demand in China is rising steadily but supply is still outstripping demand.”
He added that the pattern of annual increases in imports but falling exports is unlikely to change during the rest of the year.”
Mr Luo said even so, China, the world's largest steel exporter from 2006 to 2008, will remain a net exporter in 2009, with an estimated net exporting volume of 1.2 million tonnes for the full year.
He added that “We need to pay attention to the serious difficulties facing steel enterprises at the end of this year or the beginning of the next year.”
(Sourced from Reuters)
