Wed, 03/21/2012 - 06:46
The Chinese government is developing a plan to address the huge oversupply of steel production of one of the biggest "steel magnates in the world - according to the Ministry of Industry and Information technologies. The government, together with other agencies, is working on an acceleration of merger, the closing of outdated plants and introducing new technologies and the regulation of import of iron ore - said Jia Yinsong, employee material of Engineering, speaking at a conference in Beijing. He echoed earlier comments by other officials concerning steel. An oversupply of steel, the overwhelming demand, caused $ 586 billion government investments aimed at increasing the inventory of steel, according to information received from the Chinese manufacturers, including Wuhan Iron & Steel Group. Overproduction have led to an increase iron ore imports for the supply of metallurgical enterprises, thus contributing to higher costs, according to China Iron & Steel Association (the Association of Iron and Steel).
"China should not seek to become a global supplier of steel number 1, so as it leads to excessive costs of raw materials and energy resources, "said Xiong Bilin - Deputy Director of the Commission of the National Development and Reform" in the Industrial Department. This year, the volume of production thermally crude steel production in China could increase by 14% to 570 million tons, said today at a closed conference in Beijing, the chairman of the country's largest producer, Baosteel Group Corp. Imports of iron ore Government plans to take steps to close the factories of steel, aluminum, coke, paper and recycling industry, reported the Ministry of Environmental Protection on November 13. NDRC is looking for the relationship between surplus production and slow the pace of the various spheres of industry, it was reported Nov. 27. This year, China may import 70% of its needs in iron ore, compared with 50% last year. Contract prices for steel could rise from 15% to 20% in the next year that will match the second record, it was reported on November 17.
Imports may increase to 600 million tons this year, compared with 444 million tons in 2008, reported Reuters, citing a statement MIIT, posted at the conference. Investing in China "steel" projects reached 3.8% in the first 10 months, compared with last year. Investments in the cement industry rose to 64%. And in the flat glass industry by 35% over the same period, the ministry said.