Mr Shan Shanghua Secretary General of China Iron & Steel Association in the eighth enlarged session of the 3rd CISA Executive Council Meeting said that the crude steel production of the whole year will equal 650 million tonnes if on the basis of the daily averaged output of May that means an accretion of 80 million tonnes from last year. So it is very urgent that steel makers should take necessary measures to rein in capacity release.
Securities Times also quoted him as saying that domestic steel price has dropped to a very low level whereas raw materials prices have kept running on a high track having set some steel mills in a pinch. And it is hopeless to see any turned table in the second half.
In respect of iron ore, Mr Shan said that China will from the short run rely on this ingredient by a big margin. Facing the monopolizing big three miners, China will response by carrying on the following four measures.
1. To improve the scrap steel reclaiming system.
2. Domestic ore mines development should be intensified with a view to increasing the self-supplying rate of this ingredient up to more than 40%.
3. More effort should be put into the overseas investment to enhance China''s participation of overseas ore mines.
4. Anti-monopoly measures should be taken to seek for fair right and interest.
