China’s steel production may beat previous forecasts
Recent estimates regarding
China's 2005 steel
production have been raised to 348 million tons, meaning that the country would see a 17.7% year-on-year
production increase if the predictions hold true.
The
China Iron and Steel Association had predicted in February that output would reach 300 million tons.
The increase in
production could turn
China into a net steel exporter this year since demand is forecast to grow only 10.2% to 305 million tons.
However, a surplus of steel inventories in the domestic market could hamper
China's ability to reach the new
production estimates. Prices have fallen off steadily since the beginning of the year, and this may prompt several producers to cut back
production in the third and fourth quarters.