Baosteel says there is space for production
Speaking at the FORTUNE Global Forum held in Beijing, Xie Quhua, the chairwoman of China's largest steelmaker Shanghai based Baosteel Group Corp, said the news about excessive production in China were not true and the country still had a potential for growth. The chairwoman also said that Baosteel would not increase its steel prices and they would try to cut back the production costs instead. Baosteel also expects the Chinese steel industry to grow in the high-end segment while it may show a narrowing down in the low-end segment due to the blind investment control policy of the government. According to Xie Quhua, China's steel production may surpass 300 million tons in 2005 while consumption reaches 310 million tons. China Iron and Steel Association expects the production to reach 345 million tons while the consumption reaches 343 million tons.