Steel production exceeds forecast

China's steel industry is expanding quicker than analysts had predicted, with capacity for steel production expected to reach 490 million tonnes by the end of 2006, versus the 420 tonnes forecasted by analysts earlier, the Financial Times reported, citing new research by China Iron & Steel Association (CISA). The gap can be explained by the expansion of small, private mills, which were previously unaccounted for. The revised forecast suggests overproduction, which could lead to depressed global steel prices.