Steelmakers to sacrifice Olympic size profits for Games
Had seven major Chinese iron and steel producers not recently agreed to keep their steel prices steady for
construction works associated with the 2008 Olympic games in Beijing, the country's preparations might not have been able to clear the hurdle of ever increasing steel prices brought about by sky high
iron ore prices, which are themselves a function of
China's insatiable demand for steel.
China's demand for steel in its Olympic games projects has been obvious for a while. The National Stadium, whose
construction was halted in midst of last year and resumed at the beginning of 2005 with changes in the plans, still needs an additional 41'800 tons of steel.
The rise in steel prices might have thrust
China into a huge financial mess; that is, had it not been for the country's ’patriotic' steel producers.
Seven major iron and steel producers charged with supplying for the Olympic games, including
Baosteel, Shougang Group, Anshan Steel Group and
China Iron & Steel Association, agreed to keep their steel prices constant for the projects.