China's steelmakers are increasing prices nearly 10% to counter fourth quarter losses in 2005, the South China Morning Post reported. Wuhan Iron & Steel and Angang New Steel are due to introduce a new price schedule from March 1 with others expected to follow. An Angang spokesman said the price increase reflected changed market conditions and could be sustained in the longer term. Output was expected to grow 11.3% to 385 million tonnes this year, down from 27% growth in 2005. "This year, the industry's profit outlook is not going to be very good, given cost increase pressure and major capacity expansion," said Tiger Huang Weihua of industry consultancy Hatch. "But it should be no worse than last year."
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