Posted on 22 Feb 2008
As an increase in steel prices is a world trend and the
price of every steel product item offered by China Steel is already lower than
the international market price by US$130 US$150 per metric ton, it is
unreasonable and might cause market chaos to demand that prices be further cut,
Chen added.
Chen was responding to the domestic construction industry's
call on the ministry to urge the state-run steel manufacturer to cut domestic
prices due to soaring international prices.
The ministry, in the capacity of the steelmaker's largest
shareholder, also asked the company to ban downstream manufacturers maintaining
cooperative relations with it from exporting unprocessed steel products to
foreign countries, Chen added.
As to the downstream steel producers' comments that
"China Steel's steel materials are extremely hard to get, even if we bring
great amounts of cash to the company," Chen said that given the company's
limited output, it is natural for that company to first offer products to its
existing clients rather than meeting the needs of new ones.
Meanwhile, Chen noted the rising prices of steel products
highlighted the importance of
Chen's remarks came after the ministry announced Wednesday a
ban on exports of small steel billets and reinforcing steel bars, or rebars --
the main material for construction -- in view of a supply shortage. The measure
will begin March 5 for three months.
The ministry will put exports of H-shaped steel and steel
scrap under "supervision" which would also last for three months.
However, steel corporations that receive orders, letters of credit or advance receipts, and other verified documents before March 5, can apply for export approval by the ministry's Bureau of Foreign Trade on a case-by-case basis.
