Jaway Stainless Steel

China industry ministry sees steel exports in2011 up 6pct YoY

Reuters quoted that the industry ministry said China is likely to export 45 million tonnes of steel products in 2011 up by 5.7%YoY.

The Ministry of Industry and Information Technology also said that imports were likely to be 16 million tonnes compared with 16.43 million tonnes in 2010. Strong demand buoyed by high fixed asset investment had driven steel mills to a capacity utilization rate of 84% in the first half up 3 percentage points from the end of last year.

The ministry warned that steel production may slow in the second half on lower industrial production growth, power outages, the closure of inefficient steelmaking capacity and tighter credit curbs.

Steel product imports in the first half fell 4.8%YoY from a year earlier to 8.03 million tonnes while exports edged up 3.2% to 24.33 million tonnes.

As the world top steel producer, China is expected to output 690 million tonnes to 700 million tonnes of crude steel this year up from 627 million tonnes last year in line with forecasts by the China Iron and Steel Association recently.