Wednesday, February 22, 2012

Feb 22 - China’s Steel Industry Enters Slow Growth Period

Source: Beijing Business, ChinaScope Financial (Data)

+    After a decade of rapid growth since 2000, China’s steel industry is undergoing a slow growth. This year, crude steel output is expected to be lower than 700 million metric tons.
+    Three factors are believed to influence the production of steelworks in 2012. First, the global economic situation will not regain much of its composure in the first half of this year, thus, production for many new projects is not expected to commence in the short term. Second, the government does not encourage steel exports, so policies are likely to be introduced to reduce export tax rebate. And third, iron ore prices remain high, resulting in greater production costs compared to sales prices.

The growth of crude steel production loosens up.

Slowing downstream investment may lead to a further reduction in steel production.
Other News Headlines:
n PBOC Suspends Open Market Operations
n Ministry of Railways Issues CNY 15 Billion of Medium-Term Notes Today
n 2012 Land Supply for Residential Purposes Only Half of that in Last Year
n Passenger Traffic in Air Routes to HK, Macau and Taiwan Grew Rapidly in Jan.
n China’s Steel Industry Enters Slow Growth Period

If you'd like to receive a daily e-mail update of ChinaScope Daily Dim Sum Newsletter, please contact us:newsletter@chinascopefinancial.com. If you'd like to try out ChinaScope Database, apply for a trial here

No comments:

Post a Comment