China reverses trend as steel exports go up and imports decline and China's top steel manufacturer "Boasteel" is expecting China to be a net exporter of steel in 2006.
Owing to stronger prices of steel worldwide, China's top steel manufacturer "Boasteel" is expecting China to be a net exporter of steel in 2006, according to Xu Lejiang, chairman & president of Boasteel. The company expects total output of crude steel in China jump to about 420Mn tons in 2006.
As per government statistics, total steel production in China reached 349Mn tons. Prices in Japan, America & Europe were higher than the domestic price of steel in 2006, resulting in good exports, said Xu Lejiang in an interview by Reuters.
Xu said that he didn't predict trade fiction due to exports as China wouldn't disrespect rules of world trade nor would it dump its production. He also said that govt. of China wasn't promoting exports.
"Steel production in China is predicted to reach 516Mn tons by 2010. China is net exporter of steel but government's growing fear regarding overcapacity may pull China back to as an importer", as per our report "China Steel Industry Analysis (2006)".
Xu said that the rise, steel exports has seen, is due to development in steel industry of China and an improvement in quality of production. China was one of the top importers of steel in the past and other nations should welcome this growth in its steel industry, as China didn't complain when the nation had a very high percentage of steel imports in the past.
Total exports of steel had gone to 20.67Mn tons in the initial 7 months of 2006, an increase of 57.7% and a decrease of 28.7% is seen in imports as they dropped to 10.94Mn tons, therefore, gaining on net exports accounting to 9.73Mn tons, as per custom data.
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