China sees specialty steel development as must

China sees specialty steel development as must

China has become a major player in the global steel production by contributing nearly 140 million tons to worldwide production since 2001, yet its steel industry still faces a number of challenges. Steel making is not the only industry to have blossomed in China since 2001. The automotive and machinery industries are two other core industries that are essential for the country's overall economy. These industries flourished as the dragon awakened, but a shortage in raw materials could stunt their further growth. These industries consume high-tech specialty steel, which is exactly the kind of product that Chinese steel makers are failing to produce in large numbers. The country needs to improve its special steel sector since it still imports most of its high-tech special steel needed to make vehicles, ships and machinery. China Iron and Steel Association (CISA) in Beijing reasons that the inability of Chinese steel producers to integrate and specialize is the main culprit behind the dearth of domestically-produced high-tech steel. The chairman of CISA indicated that special and quality steel should hold a 30% share in China's overall steel production, yet it currently accounts for only 10%.