NDRC: China No Steel Mill for The World

The government would further curb steel exports and meanwhile improve energy efficiency and reduce emission, said the country's top planner in its newly released analysis report on the steel industry of the first half year.

The report by the National Development and Reform Commission (NDRC) demonstrated China's unwillingness to become a steel mill for the rest of the world and outlined the commission's plans for dealing with an overheated steel industry.

Statistics from NDRC showed domestic daily average steel output in the first half year reached such a high level that if the trend continued, annual steel output might reach 480 million tons. Given the output growth in June, the annual output may hit 510 million tons.
Currently, the problem is that steel production is increasing so fast that it pressures the domestic steel market, an NDRC official said.

At the beginning of this year, the booming steel industry exerted little influence on the domestic market only because the international market diverted most of the pressure, the official added.

The first half of the year saw a net export of about 30 million tons of crude steel equivalent, accounting for 13 percent of domestic total steel production, high compared to last year's 11 million tons of crude steel equivalent, 5.5 percent of total steel production.

During the period, net crude exports increased by 179.7 percent or 19.9 million tons from a year earlier. Of the additional 37.8 million tons of steel, only 6.8 million tons were consumed domestically, 12.9 million tons less than the same period last year.

To put the industry back on track, NDRC also plans to curb overheating steel exports by satisfying domestic demand and reducing dependence on the international market. Another focus is optimizing export structure and diversifying export destinations to avoid trade frictions, the report said.