China’s steel production may beat previous forecasts
Recent estimates regarding China's 2005 steel production have been raised to 348 million tons, meaning that the country would see a 17.7% year-on-year production increase if the predictions hold true. The China Iron and Steel Association had predicted in February that output would reach 300 million tons. The increase in production could turn China into a net steel exporter this year since demand is forecast to grow only 10.2% to 305 million tons. However, a surplus of steel inventories in the domestic market could hamper China's ability to reach the new production estimates. Prices have fallen off steadily since the beginning of the year, and this may prompt several producers to cut back production in the third and fourth quarters.