Saturday, October 17, 2009

Chinese Crude Steel "Half The World's Total"

According to Mr Chenbin, chief of the Coordination Departmen at China's National Development and Reform Commission, it is an irrefutable fact that China crude steel capacity has approached half the world's total amount.

Mr Chen, when interpreting the recently issued Advices about containing overcapacity and redundant building of some industries and guiding them into the healthy road for development, said that “Last year, Chinese steel capacity was 660 million tonnes, with equipment operating rate of around 76%, apparent consumption of around 453 million tonnes and crude steel production of 500 million tonnes, one fourth of which was for overseas market.”

He added that now China crude steel capacity has reached as close as half the world's total and it is hard to digest all the excessive capacity through exporting it to overseas.

He said that meeting domestic demand should be put to the crucial place in the development of the country's steel industry and then proper participation in international competition. China is naturally not equipped to become the world's steel products supply base due to its lack of iron ore and consideration the environment protection.

Source: Steel Guru

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