SteelOrbis Shanghai
Mr. Qi Xiangdong, Deputy Secretary General of
China's Iron and Steel Association (CISA), stated on the fourth
Far East Steel Meeting that
China's overall steel prices are expected to be in a stable upward trend in 2006.
According to Mr. Qi,
China imported 25.82 million metric tons and exported 20.52 million metric tons finished steel products in 2005, while imported 1.31 million metric tons and exported 7.07 million metric tons semi-finished steel. Calculated on crude steel basis,
China was a net exporter with 123,000 metric tons crude steel in 2005. Based on the import and export volume in January-February 2006, both the imports and exports will be around 20 million metric tons in the entire 2006.
Mr. Qi Xiangdong estimated that the growth rate of fixed assets investment will be above 20 percent due to the rapid economic growth. Meeting the domestic demand for iron and steel products will be
China's first priority. The steel
consumption in the industries of
construction, machinery, light industry, automobile, coal,
shipbuilding and petrochemical is projected to be 369.2 million metric tons, up 42.38 million metric tons or 12.97 percent from the previous year. Railway
construction will also further drive up the steel
consumption.
According to Mr. Qi's prediction,
China's 2006 crude steel output may increase 11.3 percent year on year to 392 million metric tons, and finished steel output may be 440 million metric tons, up 10.9 percent. The steel
consumption may increase 12 percent year on year to 450.61 million metric tons. The decrease in product supplement and strong demand will keep steel prices in a stable increase.