Daily Economy News quoted an anonymous governmental source said China's steel capacity may add 50 million tons more next year on top of the present level despite achievements in the elimination campaign
The source said the excessive capacity has topped 100 million tonnes, but considering the newly installed capacities that will mostly launch next year and some 60 million tonnes of inventory, severe oversupply will continue.
According to a latest report by Everbright Securities, without figuring in the eliminated capacities, China steel capacity should reach 758 million tonnes in 2010 well above the over 500 million tonnes of consumption.
In spite that China may have washed out more than 16 million tonnes of outdated capacity this year eg 4.15 million tonnes in Hebei Province, 2.4 million tonnes in Guangdong in the first three quarters, and some other furnaces and rollers in Anhui and Hubei etc, the capacity in total has increased.
Mr Jiang Qian with China Investment Corporation said "The domestic infrastructure construction push up steel demand and the low grade products made by medium and small steelmakers are also welcome; on the other hand, the local governments find hard to foster new industries to replace steel which is often the prop of their economy."
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Tuesday, December 08, 2009
13:23 |
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