Reuters cited Mr Xu Lejiang chairman of China Baosteel as saying that China steel consumption is expected to remain high but grow slowly in the short term.
He said that over the long term, China demand for steel-making raw materials, including iron ore and coking coal will shift from strong to slow growth.
Mr Xu chairman of China biggest steel mill, Baoshan Iron and Steel Co as well as its state owned parent made the comments in remarks prepared for a speech a copy of which was seen by Reuters. He said that "With the completion of China industrialization, the intensity of steel consumption required by the economic growth will gradually decline, and the slowdown in steel consumption growth is inevitable."
Mr Xu said "China steel industry will enter an era of slow growth in the medium to long term. He said that as a consequence, demand for iron ore, coking coal and other raw materials for the industry, will shift from strong growth to low growth.”
He expected a more favorable overseas investment environment for Chinese steel companies due to oversupply of raw materials in the global market and slowing growth in China's demand for seaborne raw materials.
Mr Xu said Chinese steel companies will more frequently participate in exploration and mining, acquisition of mines, as well as building new steel mills. He said that "In the medium to long term, the resource monopoly that hangs over China's steel industry will be broken."
China, the world top steel producer, imported 627.8 million tonnes of iron ore in 2009 up by 42% on the year, raising China reliance on imported ore to 63.9% of its needs.