CISA to commence studies on creation of natural resource reserves

Luo Bingsheng, the newly-retired deputy chairman of the China Iron and Steel Association (CISA), has indicated that in 2011 the CISA will begin studies on the creation of national reserves of natural resources such as iron ore and coal, and on the optimization of management of iron ore distribution and imports. Mr. Luo suggested that China should convert some of its foreign currency reserves into reserves of natural resources such as iron ore. He also anticipated that in 2011 steel prices in China will fluctuate in an upward direction.
 
Mr. Luo stated that restructuring between steelmakers was a major global trend, adding that a steelmaker with an annual output capacity of 60 million mt may soon be seen in China. China will also accelerate construction work on steel production bases at Zhanjiang and Fangchenggang and will focus on boosting restructuring activity between different districts and different companies.