Ma Kai, Minister of the State Development and Reform Commission, has pointed out recently that the cyclic economy is the only way to sustain the growth of China's iron & steel industry which is seeking to develop more muscle.

He noted that the macro-control in the sector would be focused on a reasonably designed scale, improved structure, exports adjustment and curbing the rising prices of rolled steels.

He urged steel giants to beef up their partnership with foreign resources suppliers by placing long term orders.

He required that steel makers conduct clean and efficient production and reduce waste drainage as much as possible.

He warned about the excessive production capacity for the anticipated domestic demand which he thinks should be the purpose of the capacity.

He encouraged steel makers to create group corporations through mergers, acquisitions and share holding.

As he is deeply concerned about the imminent irrational lay-out of the industry, he strongly advised transformation and extension in areas with advantages in resources, energy and transportation.

It is the pressing task, he said, to turn out steel products for high-market and discard obsolete techniques.

He highlighted the significance of innovation and intellectual property rights.

He supports listing on the overseas market with less state-ownership. However, he stressed at the same time on the necessary power of the state shares.

According to the news release by China Iron & Steel Association by the end of last month showed shrinking domestic demand and fixed asset investment, more products for high-market, higher exports, narrowing price disparity between home and world market and good corporate performance in China��s iron and steel industry for the 1st quarter of the year.

By people's Daily Online