China to rein in steel production
Recent news out of Beijing suggests that the Chinese government will take measures to ensure that the country's steel production capacity does not exceed 300 million tons per annum in the long term. At the same time, the country is also expected to continue its efforts to consolidate the steel industry in order to increase the quality of steel products manufactured. According to the China Iron & Steel Association, China's 2005 steel output is expected to exceed 300 million tons. By 2010, however, Beijing hopes to curb the explosive growth in the industry and bring nationwide production below 300 million tons. Furthermore, the association points out that the country's consolidation plans would see 50% of all production concentrated among the top 10 Chinese steel producers by 2010. By 2020, that figure would increase to over 70%.