China Securities Journal quoted China Iron & Steel Association said 60% of its members have reported their production targets for the New Year with the combined tonnages up 30m tons from that in 2008.
The reports show that domestic leading mills are generally optimistic about the market this year. However, Mr Wu Xichun senior advisor to CISA warns that steel mills should be aware of the current market situations clearly, and the fact is that China"s steel sector is plaguing with heavy excess production capacity at the moment.
The country"s steel production capacity reaches 660 million tonnes by the end of last year, with output registering at some 500 million tonnes, resulting in a 160 million tonnes surplus. And in 2009, the steel production may merely achieve 500 million tonnes.
1. Shanghai-based Baosteel, the top steelmaker in China, has outlined its 2009 targets: 24 to 25 million tonnes of pig iron, 28 million tonnes of crude steel and 27 million tonnes of finished products, generally keeps flat with that in 2008.
2. Shandong Steel Group, a regrouping of Jinan Steel Group, Laiwu Steel Group and Jiling Mining, reports the group"s sales revenue goes at CNY 119.5 billion in 2008 up by 3.9% YoY. Profit posts at CNY 3.5 billion down by 62%.
3. Shandong Steel Group plans to produce 22 million tonnes of pig iron, 21.6 million tonnes of crude steel and 22 million tonnes of finished steel products in 2009, with sales revenue of CNY 88 billion and profit of CNY 2.7 billion.
4. In 2008, Hebei Iron & Steel Group churns out 30.36 million tonnes of pig iron, 33.28 million tonnes of crude steel and 30.13 million tonnes of steel products; and the production figures are expected to reach 38 million tonnes, 41 million tonnes and 36m tons respectively in 2009.
Official from Angang Group also unveiled its 2009 production targets at 21.3 million tonnes of pig iron, 21.1 million tonnes of crude steel and 19.45 million tonnes of steel products. Exports this year are expected to reach 1.26 million tonnes with iron ore self-sufficiency declining to 50%.