SteelOrbis Shanghai
China Iron and Steel Association (CISA) counsellor Wu Xichun recently stated that in 2007 the economic efficiency of China's steel industry is expected to hit a new record with the total profits achieved by the country's leading large and medium-sized iron and steel enterprises thought likely to exceed RMB 144 billion ($19.6 billion), up about 57 percent year on year.
CISA counselor Wu said that 2007 saw new records in both the output and price of steel, with record exports leading to high-speed increases in iron ore prices and freight rates. Furthermore, Mr. Wu said that in 2007 China's steel industry made great achievements in various fields such as optimizing its structure, saving energy and reducing emissions, improving product quality and achieving economic efficiency.
Under the double influence of both domestic and overseas markets, Mr. Wu stated that China's steel production in 2007 is expected to reach approximately 490 million mt, up about 70 million mt compared with 2006. Of this increase, about 50 million mt will have been used to meet new domestic demand, while the other 20 million mt will have been destined for export.
For the whole of 2007, it is expected that China will export 62 million mt of finished steel products - up 19 million mt over last year's 43 million mt; while it is also expected that China will export 6.5 million mt of semis - down 2.54 million mt year on year. Meanwhile, China's imports of finished steel products and semis for 2007 are predicted to be around 16.6 million mt and 220,000 mt respectively. China's net exports of crude steel in 2007 are predicted at 54.58 million mt, up 20 million mt over last year, providing relief for excess capacity in the steel industry. Due to the restrictions imposed by China's export control policies for semis, net crude steel exports have declined in Q4 2007.