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Report: China scraps steel reserve plan

By Jiang Wei (chinadaily.com.cn)
Updated: 2009-01-07 15:11

China has canceled its proposal to set up a steel stockpile, one of the planned major measures to help steel makers overcome current difficulties, the Wall Street Journal has reported.

Shan Shanghua, secretary general of the China Iron and Steel Association, was quoted as saying: "It's a complicated question. After investigation, it was decided that the steel reserve policy would be revoked. It will not proceed for now."

He said there was disagreement on what type of steel or ore-related products to stockpile.

The proposal of government buying steel products for its reserves was first released by Industry and Information Technology Minister Li Yizhong in December 2008. It has stimulated some small and medium-sized mills, which suspended operation earlier last year on low demand, to go into production again.