Posted on 23 Feb 2008
Mr Chen said that 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 USD 130 to USD 150 per
tonne, it is unreasonable and might cause market chaos to demand that prices be
further cut.
Mr 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 steel maker’s largest
shareholder also asked the company to ban downstream manufacturers maintaining
cooperative relations with it from exporting unprocessed steel products to
foreign countries.
Mr Chen said that "China Steel's steel materials are
extremely hard to get, even if we bring great amounts of cash to the company.
In view of limited output, it is natural for that company to first offer
products to its existing clients rather than meeting the needs of new ones.”
Mr Chen's remarks came after the ministry announced
Wednesday a ban on exports of small steel billets and reinforcing steel bars or
rebars in view of a supply shortage. The measure will begin March 5th 2008 for
three months.
