Korea feels the heat from Chinese steel

I expect some of this growth will end up in bringing cheaper steel to Europe and North America.

Asia Times Online

After 25 years of breakneck growth, China’s massive steel industry is on the brink of achieving Mao Zedong’s dream from the ‘Great Leap Forward’ period: China could become the world’s top steel producer, by quantity, for 2005, if December production holds to the trend for January-November.

According to Chinese news services, China’s crude steel production reached 318 million tons in the first 11 months of 2005, up 25.5% year-on-year, and the figure for the whole year is likely to exceed 340 million tons – which would see China surpass Japan as the world’s leading crude producer, according to statistics released by the China Iron & Steel Industrial Association.

In addition, pig iron output registered 298.51 million tons in the first 11 months, up 29.4% year-on-year; and rolled steel production increased to 335.25 million tons, surging 24.6% year-on-year. By 2010, the country’s annual steel production is expected to top 400 million tons, according to Shan Shanghua, head of the China Metallurgical Industry Planning & Research Institute.

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