Xu Leijiang, chairman of giant Chinese steelmaker Baosteel, has stated that, as a result of the continuation of the stimulus policies for the automobile and household appliance industries, robust demand can still be expected for steel products in the coming year, and steel prices are likely to remain on a rising trend. Furthermore, Mr. Xu added that the company will try to develop itself through industrial mergers and reorganization in the future, with overseas opportunities also within its consideration.
The Baosteel chairman also said that the Chinese steel industry would face very fierce competition. The RMB 4 trillion stimulus package had boosted the steel industry by bringing forward the construction of infrastructures which should have been done several years later. Mr. Xu said this was not good for normal industrial development.