Tuesday, December 05, 2006

China's steel supply to stay ahead of consumption for 'next few years

China's steel industry is to remain in overproduction, with a recent jump in exports unable to absorb rapid increases in output, said an official with Baoshan Iron & Steel Co Ltd.

'For the next few years, China's steel supply will outstrip demand,' said Jia Yanlin, assistant to Baosteel's president, at an industry conference in Beijing.

He said China's installed capacity increase this year will reach 70 mln tons, and despite soaring exports -- seen hitting 30 mln tons in 2006 -- the expected net output is more than China required.

Link to China's full story - Forbes.com

Whilst European Steel producers are talking of price increases in quarter one, one cannot help but wonder what effect exports from China which will have upon resolve nearer home.


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