The steel product output in China surged to 300 Million Tonnes in H1 2008; resultantly, the investors will register high profits in the backdrop of strong growth.
National Bureau of Statistics reveals that the steel product output in China rose 12.5% to nearly 300 Million Tonnes in H1 2008, as reported by resourceinvestor.
The National Bureau of Statistics said that China’s overall steel production in H1 2008 surged 9.6% to 263 Million Tonnes over H1 2007. During February-June 2008, the crude steel output increased by 7-11.5%, while the output of steel products jumped around 11.7% to 13.6%. Large and medium size enterprises produced about 216 Million Tonnes of steel products and nearly 242 Million Tonnes of crude steel in H1 2008, a rise of around 12.8% and 9.7% respectively over H1 2007.
Discussing the reasons for this impressive growth in the steel output in China, a Senior Research Analyst at RNCOS said “Positive business conditions in China are leading to moderate growth in its steel industry. The growth in the industry proves to be advantageous for investors, as they will make huge profits. Also, growing steel sector will open new employment opportunities in the country.”
But, as per the RNCOS analyst, the increasing market demand is the major reason for growth in the steel industry of China as it helps industry to keep profits high. The demand from various sectors such as household appliances, shipping, railway, machinery and automobile also remained strong, thus further fuelling the demand.
Moreover, the Chinese steel industry cut huge profits due to increasing prices of steel in the country. Also, soaring prices and restricted supply in the global market are leading to a rise in prices of steel in the domestic market. The growth rate of steel prices surpassed prices of raw material, which also lead to the growth in steel industry.
The Chinese steel industry is likely to maintain moderate growth in future. Restructuring of infrastructure and houses destroyed in the earthquake and snow storm are going to boost steel demand in the country. With factors leading to high prices of steel, benefits and production of steel in the next phase are likely to grow at a moderate rate.
Related Market Research Reports:
China Steel Industry Forecast till 2012
UAE Steel Industry Analysis
Opportunities in Indian Steel Industry
