An official with the Economy Operation Bureau of the National Development and Reform Commission said on Saturday that China's crude steel production capability might grow by 49.99 million tons this year. How the new growth would be smoothly released and digested depends on the market demand and production-supporting conditions.

The official said to digest the new growth in production capability three aspects must be closely watched in terms of market demand. First, how much growth could be expected of domestic steel consumption. Second, how much decrease could be expected of steel import. Third, how much growth could be expected of China's steel export.

As learned global steel production is at a new cycle of growth. It is estimated that global steel consumption would reach about 1 billion tons in 2005. Therefore estimated global steel production would reach about 1.1 billion tons. Steel productions in more than 95 percent countries and regions grew last year, which led to fierce competition for resources. Competition in the steel market also turned fierce. The current situation is that developed countries are stabilizing steel and iron production and expanding overseas investment while developing countries are expanding production and pursuing economies of scale.

By People's Daily Online