According to Mr. Deng Qilin president of China Iron and Steel Industry Association, the high steel price and market status in 2007 will never come back and Chinese steel enterprises should make adjustments in time to face this situation.
Mr Deng told the reporter that Chinese steel industry has not met the requirements of such development trends in institutional mechanisms, quality of personnel, product structure and development strategy etc.
Chinese steel prices have been shaking at low price in the fourth quarter dragged by weak market demand, overcapacity and high inventories etc. Analysts point out that due to probable more serious overcapacity when a large number of new production capacity put into production next year, whether national elimination of backward production capacity and industrial structure adjustment policies will have obvious effects will largely determine the market prices next year.
However, based on prediction of not much change of market fundamentals and prices rise of raw materials, Lange Iron and Steel still makes optimistic estimate of steel price up by 15% to 20% next year