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Chinanews, Beijing, Feb. 8 – In 2006, China produced 419 million tons of crude steel and consumed 400 million tons of crude steel, accouting for 30% of steel consumption in the world. China has become a global center for steel making and consumption.
In 2006, China changed from a major steel importer to a large steel exporter in the world. It is expected that China’s steel production will continue to grow this year. The State Development and Reform Commission published a report on Tuesday, predicting that in 2007, China’s crude steel output will reach 460 million tons. This year, Chinese steel makers1 will set their production goals based on market demands. Since 2005, Chinese steel industry has been regarded as one where there is excessive production. In 2006, China exported 43 million tons of steel, 110% more than last year. The export of steels and steel plates increased dramatically last year, which greatly alleviated2 the problem of excessive production in domestic market, some experts said. However, experts in foreign countries are greatly concerned about China’s large steel export, fearing that when China becomes a big steel exporter in the world, its rolled steel will dominate the world market. In response to their concern, Chinese officials say that China will try to set its steel production goal based on its demand, so that there won’t be an oversupply3 of steel products in China. For domestic steel companies whose steel output will increase substantially this year, officials remind them to take effective measures to ensure that their steel products can be sold in the market.
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