According to Mr Luo Bingsheng vice deputy of China Iron & Steel Association "Steel demand will see moderate growth next year, but the situation can be very tough for mills during the year end and the beginning of 2010 given the increasing inventories."
Mr Luo Bingsheng said crude steel output would see slight decrease if mills carry out normally their maintenance plans in the last two months this year, then the accumulative output in 2009 would total at 565 million tonnes about 53 million tonnes up by 10.4%YoY.
In January to October 2009, China total steel exports dropped 66.8%YoY while imports surged 38.04%YoY. He said that "The situation won''t see significant change in the rest of year.” The China''s crude steel net export was 393,400 tonnes in January to October and the total mount this year is likely to reach 1.2 million tonnes.
Mysteel statistics show the current inventories for steel products and billets are 60 million tonnes increased of 30 million tonnes from the beginning of 2009. The steel supplies in the market this year are about 114 million tonnes higher than that of last year up by 24.5%YoY. Clearly, the sharp increase of market supply has largely stressed the market.
Mr Luo Binsheng also said that various departments are working on the draft of Guidelines for Steel Industry Healthy Development, which would bring significant influence to steel industry when finished.