China to focus on high value added steel production

SteelOrbis Shanghai The domestic market share of the Chinese steel industry has seen a rapid increase recently, especially as regards flat rolled products- according to the new research report released by, China Iron & Steel Association (CISA) consultant Wu Xichun. However, the high value-added product market still relies mainly on imports. CISA consultant Mr Wu's report goes on to state that, due to the surplus capacity of common products, exports are needed to offset the insufficient demand. China's steel industry is rapidly transforming. Semi-finished and long steel capacity increased in 2005, whereas in 2006 it was the turn of the capacity for finished common quality flat products to see a rise. For 2007, an increase in high value-added products is expected in order to reduce the overcapacity of common products and meet the demand for high value-added products.