Crude steel production to increase in China

Crude steel production to increase in China

According to the data released by China Iron and Steel Association (CISA); China's crude steel production will hit 300 million tons, pig iron production will stand at 280 million tons and apparent steel consumption will top 350 million tons in 2005. Crude steel will mostly be used to construct deformed bar and wire rod required in the domestic plate market especially in shipbuilding, container and auto sectors. Meeting the demand of the domestic market is not the only aim with the high production. Nevertheless, Chinese steel exports are expected to surpass the imports and China is likely to become a net exporter in 2005. The exports of billet, slab, rebar and commercial plate are expected to increase according to CISA. The increase in production is also expected to trigger the demand for more coal.