Rising steel exports not result of government policies
By Gong Zhengzheng (China Daily)Updated: 2006-12-21 09:58
By the end of last month, the comprehensive price index in the international steel market stood at 153.4 points, compared with 105.12 in China, the world's biggest steel producer and consumer.
"Chinese steel mills should join forces to respond actively to possible anti-dumping charges in the future," Wang said.
He said China will beef up efforts to control exports of highly energy-consuming steel products next year according to "real conditions."
Luo Bingsheng, vice-chairman of the China Iron and Steel Association, predicted the nation's 2007 steel exports will decline sharply as a result of the government's measures.
He said exports of finished steel products will drop next year by 17.5 per cent year-on-year to 33 million tons.
Liu Shuiyang, vice-president of Shougang Group, the No 5 steel mill on the Chinese mainland by production last year, said his company's steel exports will be affected next year by the government's curbs.
Liu said Shougang expects to sell 1.5 million tons of steel products abroad next year, down from the 2 million tons estimated this year. He said the biggest foreign destination for firm's steel products' is North America, with an annual export volume of 500,000 tons in recent years.
However, both Wang from the Ministry of Commerce and the steel association's Luo encouraged domestic steel companies to export more high value-added products to improve their international competitiveness.
Luo said China's crude steel production will reach 420 million tons this year, climbing 18 per cent from 2005.
He predicted that 2007 production will grow 10 per cent to 462 million tons.
China's imports of finished steel products will tumble 28.4 per cent to 18.5 million tons this year, he said.
Imports will total 17.6 million tons next year, down 5 per cent, he added.
He estimated demand for crude steel on the mainland will grow around 10 per cent next year.
In the first 11 months of this year, the crude steel demand increased by 9
per cent year-on-year to 351.6 million tons.
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