China Steel Manufacturing to Double by 2010

The Chinese steel industry is speeding up and will experience a peak that has never been by the end of this decade, according to the chairman of China Iron and steel Association (CISA).

In charts for a presentation to be given at the IISI annual steel conference held this year in Berlin, Zhang Xiaogang also forecast obsolete capacity would be removed from the country by then as well.

"By 2010, the iron and steel enterprises will be decreased greatly in number and the production of the top ten enterprises groups in the country will make up over 50 percent of gross crude steel production of China," Xiaogang said in the charts.

Super large-scale iron and steel companies with capacity of over 50 million tonnes will be formed, said the executive, who is also president of Anshan Iron & steel Group Corporation -- parent of China's number three producer, Angang steel Co.

"By 2010, the obsolete capacity of 100 million tonnes of pig iron and 55 million tonnes of raw steel will be eliminated," Xiaogang said, adding that this year 35 million tonnes of obsolete capacity of crude steel should be eliminated.

Anshan Iron and steel Group is merging gradually with Benzi Iron and steel Group (Bengang) in a state-directed marriage that will create China's largest firm based on 2006 output, with capacity of around 32 million tonnes a year.

Speaking at the conference, IISI Deputy Secretary General Mika Saariaho cited the global steel industry association's expectation that apparent steel use in China would grow 11.5 percent to 443.8 million tonnes next year.