Steel sector to cool down
7 September 2007
China's steel consumption will fall over the next few months, said Zhang Xiaogang, chairman of the China Iron and Steel Association (CISA), Economic Observer reported (in Chinese). Three main reasons for the drop are the slowdown of fixed-asset investment growth and drops in both steel output and exports, according to Zhang. The consumption of steel will drop 13% due to macroeconomic controls such as the recent interest rate increase. Other controlling measures, including the closure of small steel plants and restrictions on the building of new projects, are aimed at reducing excess capacity in the sector for the year.