Wednesday, January 14, 2009

China To Step Up Domestic Steel Consumption

China will step up consumption of domestic steel products and also help steel firms stabilise their overseas market share through flexible export-tariff policies according to the country's State Council said.

The cabinet approved today a plan to revitalise the steel industry after a meeting chaired by Premier Wen Jiabao, according to a statement.

Although the statement did not give details of the plan, it said the government will encourage restructuring among steel companies via mergers and acquisitions in order to boost their competitiveness.

The government will also set aside funds to spur technical innovation in the steel industry.

Chinese steel firms are struggling with weak prices as demand has fallen amid the global economic downturn.

Source: Forbes, XFN

No comments: