Report examines growth of China’s steel industry

A report on the Chinese steel industry, detailing the first three quarters of 2007, is now available from Dublin, Ireland-based research firm Research and Markets.

Entitled China Steel Industry Report 2007-2008,the 98-page analysis examines the trends and growth in the country’s steel industry.

According to the report, from January to August 2007, China’s assets in the steel industry totalled $373.8 billion, up 23.8% year-on-year.

Sales revenue for the entire industry rose by 36.2% during this timeframe.

The report says that China’s steel industry has entered a golden period of development, with profits growing significantly to $17.4 billion for the first eight months of 2007.

In the production area, domestic output of crude steel reached 41.6 million tons for the year until August 2007, a 13.6% increase year-on-year. Domestic output of steel products rose by 23.7%, with a total of 48.3 million tons produced.

Although there was no drop in output in the steel industry, the report noted that the growth rate of production declined towards the end of the period, compared with the beginning of the year.

The report says that demand and supply were more or less balanced in the Chinese steel market during 2007.

In addition to examining the industry on a broad spectrum, the report also looks at individual steel companies including Baosteel, Anshan and Benxi Steel group.

From January to August 2007, Baosteel produced nearly 19 million tons of crude steel, a 6.5% year-on-year increase, making it the country’s largest producer during this timeframe. Baosteel was followed closely by Anshan and Benxi Steel, each rising 4.8% year-on- year, producing a total of 15.62 million tons of crude steel.

The report also includes predictions for the future of the Chinese steel market, including growth in export pressure, an increase of sensitivity to environmental issues and an upward trend for iron ore prices — albeit, at a slower rate of growth.

— China Steel Industry Report 2007-2008 is available for purchase in both hard copy and electronic format from www.researchandmarkets.com.