China Demand of Steel Products Will be Up 10% in 2005

According to the report of International Iron and Steel Institute
(IISI), the global demand of steel products will be up 3.7%, about 36 million ton, and break through 1 billion ton for the first time. Demand of steel products in China will be up 10%, to 293 million ton.

In March 2005, due to the strong steel products capacity of China, global steel output were up 6.5% over 2004, to 92.9 million ton. China's steel products output were up 24.1% to 27.5 million ton in that month. In addition, China Administration of Taxation will carry out the new policy of drawback from May. Drawback rate will be decreased from 13% to 11% in that new policy. The policy will play a important role in the stable and sustainable development of China's steel industry. However, it will impact the immediate profit of China's steel industry.

During the first two months of 2005, amount of steel for export in China were up 205% over 2004, to 2.98 million ton. Of the total export steel, sheet steel accounted for 1.3 million ton; tube steel accounted for 0.9 million ton; others accounted for 0.45 million ton.