Facing fiercer competition and structural adjustment, China's
steel industry will probably change course next year, said Huang
Tianwen, president of Sinosteel Corporation, at yesterday's World
Shipping (China) Summit, according to the China Securities
News.
The impact from the United States' subprime credit crisis is
still felt, and the Chinese government as a result may resort to
further fiscal measures next year, in an effort to eliminate risks
stemming from excessive liquidity, said Huang.
Meanwhile, growth in steel output and fixed asset investment
slowed from 2005's rates in response to shrinking demand for
steel.
Although newly proven reserves of iron mines rise year after
year, illegal small mines are depleted and the yield and quality of
traditional mines drop. This constrains the potential steel output
capacity from improving significantly.
Australia, Brazil, and India are still the world's major iron
suppliers. Bhpbilliton and RioTinto from Australia, together with
Companhia Vale do Rio Doce from Brazil, control 70 percent in
shipping the iron mine.
When China's iron mine import growth accounts 80 percent of the
world total, raw material price fluctuations and soaring shipping
cost could force China's steel industry into a precarious position,
Huang noted.
(Chinadaily.com.cn November 2, 2007)
