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China to produce 490m tons crude steel this year

Chinese crude steel output is estimated to hit 490 million tons this year, 16 percent higher than the figure last year, said Luo Bingsheng, deputy head of the China Iron and Steel Association on Saturday.

Although steel output has been pushed up by both overseas and domestic demand, government macro-control policies will keep steel exports in tight rein in the fourth quarter, said Luo.

China has seen a 18.14-percent jump of crude steel production to 408 million tons in the first 10 months, but the growth in steel production has slowed down on a monthly basis, dropping to 13.5 percent in October from 26.08 percent in January.

Domestic steel enterprises are generally performing well this year, said Luo, though he acknowledged that increase in raw material prices and transportation expenses had put the companies under pressure.

The profit rate of representative large and medium-sized steel enterprises has been going down from 9.65 percent in March, which deserves the notice of domestic steel producers, said Luo.