China scrubs plan for plant by Korean steel giant

INI Steel, South Korea's second-largest steelmaker, said China has rejected its request to build a US$1bn steel plant because of changing investment restrictions on infrastructure and raw material projects. China, which consumes one-third of the world's steel, announced last year it would curb investment in steel mills and other commodity-related industries because rising raw material costs were spurring inflation. INI has a plant in Qingdao that assembles heavy machinery.