China Knowledge quoted Mr Li Shijun chief analyst for the China Iron and Steel Association or CISA said China is expected to have an annual steel output increase of 6% in the period from 2011 to 2015 compared with an annual growth of 12% from 2006 to 2010 and nearly 23% between 2001 and 2005.
Mr Li said China crude steel output reached a record 627 million tonnes last year, but the profit margin was not more than 3%, the lowest in the recent years. He noted that most of the backward steel companies in China should be washed out in the near future to increase the country profit margin in the steel industry.
China will probably produce 850 million tonnes of steel per year in the next five years whereas it yielded 627 million tonnes in 2010 and expects to yield 700 million tonnes in 2011.
( Source: www.steelguru.com )