News Room - Steel Industry

Posted on 05 Jul 2010

Baosteel Warns of Construction Steel Overcapacity

Though China's steel demand to maintain at a high level supported by industrialization and urbanization, periodical and structural overcapacity deteriorated.

Wu Dongying, dean of Baosteel's Economic and Management Research Institute, warned of construction steel overcapacity in the following 2-3 years. Due to low concentration, low resource control as well as circulation disorder, Mr. Wu predicted that steel market will maintain fluctuation in the long run.

Boosted by 4 trillion Yuan stimulus package, lots of medium-and-long-term infrastructure projects were carried out head of schedule. Although current capacity utilization rate is approaching to 80 percent, due to shrinking demand in the future, it is predicted that construction steel overcapacity may be much outstanding in the future.