China steel industry eyes brisk business

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IANS | 09 Jun, 2012
The Chinese steel industry will witness a surge in demand due to government approval of major infrastructure projects in the country, experts said.

The State Council announced a series of policies to stimulate the economy, which include approval of railway, energy and infrastructure projects, China Daily reported.

Analysts predict the projects will increase the demand for steel and their prices. The price of hot rolled steel in China is currently 4,168 yuan ($655) per tonne.

The approval of new projects will help rebuild market confidence, said Ma Li, analyst at Lange Steel Information Research Centre.

According to China Steel and Iron Association, the steel inventory in 26 major markets in the country reached about 15 million tonnes by June 1.

China exported 4.67 million tonnes of steel in April, 361,000 tonnes less than the previous month, a 7.2 percent drop month-by-month, the daily added Thursday.