China to add 43 million mt new capacity in 2006

SteelOrbis Shanghai While the production capacities of both pig iron, crude steel and finished steel will increase in 2006 in China, the fastest growth will be for rolled products. According to the statistics from China Iron and Steel Association (CISA), when the capacity to be added with the production lines currently under construction and to be eliminated with the closure of outdated lines are taken into account, China's pig iron capacity will increase 25 million metric tons to 414 million metric tons, crude steel capacity 23 million metric tons to 439 million metric tons and finished steel capacity 43 million metric tons to 463 million metric tons in 2006. In 2005, the members of China Iron and Steel Association (CISA) added 7 sets of rolling machines for medium plate with 6.3 million metric tons of additional capacity, 11 sets of hot rolled continuous rolling machines with 23.9 million metric tons of new capacity, 6 sets of cold rolled continuous rolling machines with 7.46 million metric tons of new capacity, 7 sets of single and double strand CR rolling machines with 1.99 million metric tons of new capacity, 5 sets of galvanizing machines with 1.43 million metric tons of new capacity, 3 sets of medium, wide and narrow rolling machines with 900,000 metric tons of new capacity, 3 sets of section rolling machines with 1.6 million metric tons of new capacity, 8 sets of rolling machines for bar rod and wire rod with 3.55 million metric tons of additional capacity and 6 sets of pipe machines with 2.27 million metric tons of new capacity. Total number of new machines is 56 with 49.4 million metric tons new capacity in total. In 2006, the steelmakers are expected to add 10 sets of rolling machines for medium plate with 9.8 million metric tons of new capacity, 10 sets of hot rolled continuous rolling machines with 2.29 million metric tons of new capacity, 6 sets of cold rolled continuous rolling machines with 9.15 million metric tons of new capacity, 6 sets of single and double strand CR rolling machines with 3.28 million metric tons of new capacity, 5 sets of galvanized machines with 1.52 million metric tons, 2 sets medium, wide and narrow rolling machines with 1.39 million metric tons of new capacity, one color coated production line with 150,000 metric tons of capacity, 7 sets of rolling machines for section bar with 3.27 million metric tons of capacity, 12 sets of machines for bar rod with 7 million metric tons of capacity and 4 sets of rolling machines for pipe with 900,000 metric tons new capacity. Approximately 63 sets of machines will be added with 59.41 million metric tons new capacity in total. Exluding the production lines which will not be completed in 2006, and the outdated capacity to be eliminated; the additional capacity in 2006 will be around 43 million metric tons.