Steel distribution partnership

Sumitomo Corporation will set up a joint venture with Baosteel and First Automotive Works to process
and distribute steel for the vehicle industry, reported Liberation Daily. The Ynl76m tie-up
would provide steel proessing and distribution for FAW and more joint ventures might
follow, said a Baosteel executive. China's top steel-maker already has a contract with FAW
to co-operate in steel supply and vehicle sales.
Japanese steel makers have said they
intend to cut exports to China by up to 20 per cent in July in order to maintain prices in the
face of weakening demand.