TISCO proves its mettle in tough steel market (2)

Because of the high price of iron ore and falling downstream demand, China's steel industry fell into a major deficit last year, with a total loss of 3.4 billion yuan during the first 10 months of 2012.

The country's major steel companies - which account for 80 percent of total output - had combined profits of just 1.58 billion yuan for the whole year, a 98.22 percent year-on-year drop, according to figures released by the China Iron and Steel Association last week.

However, capacity still grew in 2012 and will reach more than 1 billion metric tons, according to the association.

Against this tough trading environment, it is the quality of TISCO's high-end products that have meant it has been able to keep its head above water, while many in the industry have floundered, according to its chairman, Li Xiaobo.

"We consider our technological innovation is the key to upgrading our products to be competitive in the market.

"People always say that China's steel market is severely oversupplied, but in fact we still have to rely on imports for top high-end steel products," he said.