Luo Bingsheng, vice chairman of the China Iron and Steel Association (CISA), has stated that apparent consumption of crude steel in China is expected to increase by 40-50 million mt in 2011 provided that fixed asset investment in the country maintains a year-on-year growth rate of 20 percent.
Mr. Luo said that in 2010 annual apparent consumption of crude steel is expected to reach around 596 million mt, up 31.5 million mt or 5.6 percent year on year. Meanwhile, total domestic production of crude steel may rise by 47 million mt or 8.2 percent to 624 million mt in the same year.
The CISA official said that the Chinese steel industry would continue to operate at low profit margins, mainly due to excessive steel production capacity, restrictions on exports and upturns in production costs.