Zhang Xiaogang: China’s steel market still has difficulties to overcome

On March 5, Zhang Xiaogang, president of Liaoning-based Chinese steelmaker Anshan Steel, has stated that the domestic steel industry is under pressure from a number of factors. First among these factors, he said, were imports. There will be a total of 50 million mt of steel surging into the Chinese market in 2010, and China's domestic steel is usually priced higher than the imports. The second factor is trade protectionism in the export markets, which has been causing a crisis in China's steel industry. The third factor is raw material, with Mr. Zhang expressing a lack of optimism on the outcome of the current iron ore talks. The last factor, he said, is the uncertainty as regards China's financial and monetary policies.