China`s steel output crosses 404 million tonnes in 2006

29 Jan 2007

Beijing: Buoyed by soaring demand, crude steel output in China surged 18.48 per cent to reach 418.78 million tonnes in 2006, the government said on Monday.

According to china's top economic planning agency, the National Development and Reform Commission (NDRC), China's pig iron production rose to 404.17 million tones in 2006, an increase of 19.78 per cent from the previous year. NDRC also revealed that the country's output of steel products reached 466.85 million tones, a jump of up 24.45 per cent.

The commission said that despite macroeconomic policies, the steel sector grew because of huge market demand generated by the booming economy.

China's booming steel exports have been blamed for trade friction with steel makers in the US, with the American iron and steel institute appealing to office of the US trade office twice last year, demanding action to counter China's alleged subsidies to its steel manufacturers.

According to the NDRC, the government will focus on restructuring and closing small and illegal companies that had mushroomed to capitalize on growth prospects. It also said that the major polluting companies would also be closed, while steel companies would be encouraged to become energy efficient in the coming four years through 2010.

China also exported a record 43.01 million tonnes of steel in 2006 despite government cooling measures and anti-dumping investigations launched by trade partners, according to latest customs figures.

China exported 43.01-million tonnes of steel in 2006, up 109.6 per cent year-on-year, while imports dropped 28.3 per cent to 18.51-million tonnes. Net exports for the year reached 24.5 million tonnes.