China Steel capacity to climb further - Official
By Daniel at 7 July, 2009, 2:37 pm
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Chinese Steel Prices surged on July 6th 2009. The Chinese Long Product Price Index CLPPI increase by 45 points whereas the Chinese Flat Products Index CFPPI has also increase by 3 points. The overall price index CHISPI increase by 21 points.
China Securities Journal citing Mr Liu Shijin deputy director of the Development Research Center of the State Council as saying that “There is no overcapacity at all in China’s steel industry in the long-run.”
According to Mr Liu, the overcapacity does not exist since the summit of Chinese steel production has yet to come which is likely to be 700m tonnes to 800m tonnes. He said that the peak level for auto industry would be above 15m units or even 20m units per year while production this year would exceed 10m units.
The viewpoint was echoed by Baosteel chairman Mr Xu Lejiang, who said on the same meeting that Chinese steel production capacity would climb further in future.
Steel production in China has taken up 48% of global total in the first five months of this year, far exceeding the earlier proportion of one third.
(Sourced from China Securities)
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