Robust increase in China's steel production

Robust increase in China’s steel production

According to the National Bureau of Statistics of China, the steel production of the country reached 34.3 million tons in April. In the first four months of 2005, the total production reached 105.94 million tons with 24.77% year on year increase. Meanwhile, the pig iron production of the country increased 30% year on year to 99.99 million tons in the first four months. The total steel products production increased 23.3% year on year and reached 112.03 million tons. Furthermore, overall raw iron ore production of the country reached 105.63 million tons with 22.71% year on year increase in the four months. The figures show that the Chinese steel industry is growing beyond the forecasts and beyond the demand. In addition, the iron ore imports and domestic production of the country is also growing more then the growth rate of pig iron production. Coke production of the country is also growing more than the domestic demand. With the current rates of increases, China's annual steel, iron, steel products and iron ore production will certainly exceed 310 million tons, 300 million tons, 330 million tons and 310 million tons respectively. On the other hand, the demand continues slowing down with the easing of prices. Some analysts think that the excess production in China will lead to increase in the exports of China, thus become a trouble for the global steel industry.