According to Qilu Securities Co., Ltd., a large-scale comprehensive securities company approved by China Securities Regulatory Commission and financed by Laiwu Steel Group Co., Ltd., China Jianyin Investment Co., Ltd., Yankuang Group Co., Ltd. and Jinan Iron and Steel Group Corporation. it is expected that China's domestic crude steel output will register an increase in 2011, with new blast furnaces in China expected to add 50 million mt of output capacity in the year in question.
Qilu Securities indicated that at the same time the Chinese government is continuing to eliminate backward capacity. Citing China's Ministry of Industry and Information Technology (MIIT), it said China is scheduled to eliminate 70 million mt of pig iron output capacity in 2011; however, market players consider that only 40 percent of this target can be achieved.
In 2009, Chinese domestic crude steel output capacity was 720 million mt, with the figure expected to rise to 770 million mt in 2010 and 790 million mt in 2011. Meanwhile, crude steel consumption in China will also increase. Luo Bingsheng, deputy chairman of the China Iron and Steel Association, has stated that domestic demand for crude steel in 2011 will be 40-50 million mt higher than in 2010.