Mr Song Jijun, vice chairman of the Hebei Metallurgical Industry Association, the first half of this year will a difficult period for the industry but it will be a time for the industry to run into stable operations with government's stimulus policies taking effect.
Mr Song expects that the industry is likely to recover in later this year or early in 2010, however he suggested that there are three points that merit attention and will help to assess this year's steel movements.
1. The financial crisis is not yet at the bottom, implying that the economy will come under further pressure. As the world economy recovers, so will Chinese industry.
2. China's micro-control policies show that this year is the key phase to prevent the economy from sliding.
3. Steel prices will gradually recover. However, overcapacity will become more obvious this year and there will be changes in the market structure.
In conclusion, Mr Song suggested that there should be cautious optimism about the steel industry this year.
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