Tuesday, 16 Feb 2010
Xinhua quoted the Ministry of Industry and Information Technology said the outlook of China steel industry will be better this year than 2009 as the impact of the stimulus package continues.

The MIIT said a strong increase in new investment plans would help boost domestic demand for steel while improving external demand following world economic recovery would encourage steel exports. It said the implementation of a proactive fiscal policy and moderately easy monetary policy injected ample liquidity into the market and provided the steel enterprises with easy access for fund.

The ministry said however, excess capacity, still weak external demand and rising production costs would all impose pressure on the development of the industry.

China crude steel production capacity was forecast at 700 million tonnes at the end of 2009 compared with 660 million tonnes at the end of 2008.

In 2009, China steel output rose 13.5% to 567.84 million tonnes. Its 68 large and medium sized iron and steel companies reaped CNY 55.39 billion in profit in 2009 down by 31.43% from a year earlier.

(Source from Xinhua)