China’s steel output is nearing its capacity, according to one of the country’s senior figures in its steelmaking industry.
The Australian Financial Review reports that Li Xinchuang was much less optimistic than the major mining houses about China’s future steel output, predicting this would peak at around 870 million tonnes a year.
Li is the deputy secretary general of the China Iron and Steel Association, whose interests a lower iron ore price would serve.
According to studies by Li’s Group, steel output “cannot go over 900 million tonnes,” he said.
The Australian reports that BHP and Rio Tinto are predicting that China’s steel output will hit its peak at over 1,000 million tonnes.
The average price of iron ore per tonne has been $US 102.50, compared to about $US 135 last year.
“My understanding is the price will be around $US80 for a long time because of the volume being produced,” said Li.
Source: Mining Australia
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
![Steel Insights](/assets/images/news/coal-insights.jpg)
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
![Steel Insights](/assets/images/news/ICMW_Jan09.gif)
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
![Steel Insights](/assets/images/news/ISMW.gif)
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
![Steel Insights](/assets/images/news/SteelInsights.jpg)
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.