Chinese steel output on the rise

Chinese steel output on the rise

Chinese State Economic and Trade Commission's predictions, Chinese steel output is to further rise in 2003, reaching a total of 200 million tons. The country's total steel production was 100 million tons in 1996, 155 million tons in 2001 and the conjectured figure by the end of 2002 is 180 million tons. This expectancy of increase is promoted by the strong demand in the local market, derived from the rise in construction, automotive and shipbuilding industries on top of the better than expected export rates of machine and electronic products. For the first nine months of 2002 total output is 140 million tons with a 20% rise compared to the same period of last year. According to experts, if the current market growth can be maintained, steel output in the country might reach record numbers. It is suggested on the other hand that domestic steel companies monitor market conditions closely in order not to allow uncontrolled growth of production which might result in oversupply on the domestic market. According to imports data, China imported approximately 19 million tons of steel during the first nine months of 2002, up by 47% compared to year 2001. End year figure is predicted to reach 20 million tons. There is great pressure on the country's high steel imports as a result of the nation's WTO entry, although the import tariffs on steel imports are dropped by 50% and the quotas are lifted, as a requirement of the WTO rules. China states that the 180 day temporary safeguard measures protected the domestic steel producers to some extent from the surge of steel imports.