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.