China's steel consumption not to peak before 2010, experts

L

Home BizChina Metrolife Dragon Kids Forum {Tf1'4T

News > Business News ...

China's steel consumption not to peak before

2010, experts

( 2004-01-25 15:04) (Xinhua)

Though China's steel production and consumption increased

rapidly in the past two years, experts say that China's steel

consumption will not reach its peak until 2010.

"To judge whether or not a country reached the peak steel of

consumption, one should consider the certain country's

industrialization level," said Li Shijun, deputy secretary-general

of the China Iron and Steel Association (CISA), at a recent forum

on the steel industry here.

Li noted that China is still in the development stage of

industrialization. Since 2002, China has entered a new round of

rapid economic development, which will bring the consumption of

steel to a higher level.

By 2005, the country will need 250 million tons of steel and the

figure is expected to reach 310 million tons by 2010, said Li.

Experts noted the judgment on China's steel consumption trend

in the next years is of importance for the long-term policy

making in the sector.

Since 2001, China's consumption of steel has increased by 30

million tons annually to reach 250 million tons in 2003, keeping

the No. 1 position in the world, surpassing the combined sum of

those in the United States and Japan. The International Steel and

Iron Association predicted that in 2004, China will consume 31

percent of the world's total.

In the meantime, the country produced 210 million tons of

steelin 2003, up 15.38 percent from in 2002.

Li said that in other countries which have finished the

industrialization process, like the United States, Japan and

England, the steel consumption reached the peak usually when

the urbanization rates reach 65 percent or above.

China's urbanization rate was at 37.7 percent in 2001.

Though China's steel consumption will continue to grow in the

next years, experts warned against the overheating and

repetition of construction in the sector.

Since 2002, as investment keeps pouring in, a number of new

Page 1 of 2

.contact us l.about us

CHIN D4 1L't°

t.ia lrl ff):k- ; u

Search:

Go to Another Seci'on

Other Section

Article Tools

go

Advertisement

E-Mail This Article

Print Friendly Format

Comment on this article

Go to News Talk

Related Articles

+UK's steel giant eyes

China market

2004-01-24

+JV to help meet sheet

steel demand

2004-01-16

+China's Wuhan Steel: To

benefit from steel dumping

tariffs

2004-01-14

http://www2.chinadaily.com.cn/en/doc/2004-01/25/content_3O0957.htm 8/8/2005

 EE-RM/STD-00-550 COMMENT 86

China's steel consumption not to peak before 2010, experts Page 10f2 

.contact us I.about us 

Home BizChina Metrolife Dragon Kids Forum :q;~mitl1>fF9tJtI11 9t~~JJ ~Jlfi:l!!l)t ~I!ID tfirnNews> Business News ... 

China's steel consumption not to peak before 

2010, experts 

( 2004-01-25 15:04) (Xinhua) 

Though China's steel production and consumption increased 

rapidly in the past two years, experts say that China's steel 

consumption will not reach its peak until 2010. 

"To judge whether or not a country reached the peak steel of 

consumption, one should consider the certain country's 

industrialization level," said Li Shijun, deputy secretary-general 

of the China Iron and Steel Association (CISA), at a recent forum 

on the steel industry here. 

Li noted that China is still in the development stage of 

industrialization. Since 2002, China has entered a new round of 

rapid economic development, which will bring the consumption of 

steel to a higher level. 

By 2005, the country will need 250 million tons of steel and the 

figure is expected to reach 310 million tons by 2010, said Li. 

Experts noted the judgment on China's steel consumption trend 

in the next years is of importance for the long-term policy 

making in the sector. 

Since 2001, China's consumption of steel has increased by 30 

million tons annually to reach 250 million tons in 2003, keeping 

the No.1 position in the world, surpassing the combined sum of 

those in the United States and Japan. The International Steel and 

Iron Association predicted that in 2004, China will consume 31 

percent of the world's total. 

In the meantime, the country produced 210 million tons of 

steelin 2003, up 15.38 percent from in 2002. 

Li said that in other countries which have finished the 

industrialization process, like the United States, Japan and 

England, the steel consumption reached the peak usually when 

the urbanization rates reach 65 percent or above. 

China's urbanization rate was at 37.7 percent in 2001. 

Though China's steel consumption will continue to grow in the 

next years, experts warned against the overheating and 

repetition of construction in the sector. 

Since 2002, as investment keeps pouring in, a number of new 

http://www2.chinadaily.com.cn/en/doc/2004-01/25/content_300957.htm 

Search: I 

Go to Another Section 

Other Section 

Article Tools 

E-Mail This Article 

Print Friendly Format 

Comment on this article 

Go to News Talk 

Related Articles 

+UK's steel giant eyes 

China market 

2004-01-24 

+JV to help meet sheet 

steel demand 

2004-01-16 

+China's Wuhan Steel: To 

benefit from steel dumping 

tariffs 

2004-01-14 

Advertisement 

'el:0010 641941101'-551 

rID!: aI'l1D 64934,'56 

e,.mgj: lelren~)'.com.cn 

8/8/2005 
China's steel consumption not to peak before 2010, experts

steel production projects are being built. Industrial experts

warnthat the steel sector is becoming overheated , noting that

risks are accumulating in both raw material supply and the sale

of finished products.

The Chinese government has been aware of the risks and started

to draft policies to rectify irrational investments in the sector,said

Wang Jiong, general manager of Wuhan Iron and Steel Company

in central China's Hubei Province.

The remedy is expected to focus on land and credit management.

Besides, the coming policies seem sure to tighten market access

inthe steel industry. New projects must meet requirements in the

capacity of blast furnaces , auxiliary facilities , energy

consumption , water consumption , and pollution discharge.

Comment on this article E-Mail This Story

Today's Top News Top Business News

+Consumer confidence on China's

mainland rebounds

( 2004-01-25)

+China's steel consumption not to peak

before 2010, experts

( 2004-01-25)

+Opportunity lands successfully on Mars

( 2004-01-25)

+Groundwater overuse endangers

Beijing-Shanghai railway

( 2004-01-25)

+EU may lift ban on arms sales to China

( 2004-01-24)

Close

+Consumer confidence on China's

mainland rebounds

( 2004-01-25)

+China's steel consumption not to peak

before 2010, experts

( 2004-01-25)

+Shenzhen continues to lead nation in

foreign trade

( 2004-01-24)

+China's IT market see sales of

US$25.3b in '04

(2004-01-24)

+UK's steel giant eyes China market

(2004-01-24)

Copyright By chinadaily.com.cn. All rights reserved

Page 2 of 2

.contact us I about us

http://www2.chinadaily.com.cn/en/doc/2004-01 /25/content_300957.htm 8/8/2005

 EE-RM/STD-00-550 COMMENT 86

China's steel consumption not to peak before 2010, experts 

steel production projects are being built. Industrial experts 

warnthat the steel sector is becoming overheated, noting that 

risks are accumulating in both raw material supply and the sale 

of finished products. 

The Chinese government has been aware of the risks and started 

to draft policies to rectify irrational investments in the sector,said 

Wang Jiong, general manager of Wuhan Iron and Steel Company 

in central China's Hubei Province. 

The remedy is expected to focus on land and credit management. 

Besides, the coming policies seem sure to tighten market access 

inthe steel industry. New projects must meet requirements in the 

capacity of blast furnaces, auxiliary facilities, energy 

consumption, water consumption, and pollution discharge. 

Comment on this article E-Mail This Story 

Close 

News Business News 

+Consumer confidence on China's +Consumer confidence on China's 

mainland rebounds mainland rebounds 

( 2004-01-25) ( 2004-01-25) 

+China's steel consumption not to peak +China's steel consumption not to peak 

before 2010, experts before 2010, experts 

( 2004-01-25) ( 2004-01-25) 

+Opportunity lands successfully on Mars +Shenzhen continues to lead nation in 

( 2004-01-25) foreign trade 

+Groundwater overuse endangers ( 2004-01-24) 

Beijing-Shanghai railway +China's IT market see sales of 

( 2004-01-25) US$25.3b in '04 

+EU may lift ban on arms sales to China (2004-01-24) 

( 2004-01-24) +UK's steel giant eyes China market 

( 2004-01-24) 

Copyright By chinadaily.com.cn. All rights reserved 

http://www2.chinadaily.com.cn/en/doc/2004-01/25/content_300957.htm 

Page 2 of2 

.contact us I.about us 

8/8/2005