Steelmakers to sacrifice Olympic size profits for Games

Steelmakers to sacrifice Olympic size profits for Games

Had seven major Chinese iron and steel producers not recently agreed to keep their steel prices steady for construction works associated with the 2008 Olympic games in Beijing, the country's preparations might not have been able to clear the hurdle of ever increasing steel prices brought about by sky high iron ore prices, which are themselves a function of China's insatiable demand for steel. China's demand for steel in its Olympic games projects has been obvious for a while. The National Stadium, whose construction was halted in midst of last year and resumed at the beginning of 2005 with changes in the plans, still needs an additional 41'800 tons of steel. The rise in steel prices might have thrust China into a huge financial mess; that is, had it not been for the country's ’patriotic' steel producers. Seven major iron and steel producers charged with supplying for the Olympic games, including Baosteel, Shougang Group, Anshan Steel Group and China Iron & Steel Association, agreed to keep their steel prices constant for the projects.