According to Mr Wang Jing, general manager of Shanghai Baosteel International Economic & Trading Corp Ltd, steel export in 2009 is expected to take up 8% to 10% of Baosteel Group's total production.
This figure includes capacity of all Baosteel Group's subsidiaries such as Baoshan Iron & Steel, but excludes that of Ningbo Steel.
Mr Wang said the high raw materials costs still constrain Chinese steel industry's development and domestic steelmakers should increase their pricing power in annual iron ore talks. He said that the weak collaboration mechanism between up-stream and down-stream enterprises has resulted in a panic undersell in the second half of last year, with the price for steel-related products falling 40%.
As for the quest for overseas prime resources, Mr Wang suggested that Chinese companies should not be too concerned with the debts their targets are laden with. He said that China's steel industrial upgrading fares quite well at the moment with large spending in technical advancement and innovation Most steel mills have established a modern enterprise system which is very important for their long term development.
Source: My Steel
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