China crude steel production may slow down in coming years

China crude steel production may slow down in coming years.

China's crude steel output growth is likely to slow down in coming years as the government continues to implement power curbs-related policy in the country's energy-intensive industries, said Yao Ziping, general manager of Minmetals Development Co.
Yao predicted at an industry forum on December 11 that the current government target of energy conservation and emissions reduction will weigh on the crude steel production in the first quarter of 2011. The industry's output may continue to get affected in the following years as the government tightens the relevant policies. China's crude steel output dropped for the fifth time in the recent six months after authorities ordered rationing of electricity use to steel mills. The latest data released by the National Bureau of Statistics (NBS) on Saturday showed that crude steel output fell 0.3 percent to 50.17 million metric tons (tonnes) in November from 50.3 million tonnes in October, while total output during the January-November period gained 10.1 percent year on year to 577.3 million tonnes. Yao forecasted that full-year output of crude steel is likely to hit 625 million tonnes in 2010 with nearly 10 percent year on year growth. In spite of concern over a sluggish steel production, Yao is optimistic about the industry's exports, saying that China's iron and steel exports may further pick up in future with a warming global economy. The General Admission of Customs (GAC) said on Friday that exports of steel products surged 87 percent year on year to 39.70 million tonnes during the January-November period.