China expects steel price to remain steady in 2007

China expects steel price to remain steady in 2007

Last Updated(Beijing Time):2007-01-18 17:05

China will see a balance of supply and demand for steel in 2007, with the steel price remaining close to last year's level, according to a report released Tuesday by the National Development and Reform Commission (NDRC).

The average steel price in 2007 is expected to be around 3,800 yuan (about 507 U.S. dollars) per ton, slightly higher than last year's 3,737 yuan (about 498 U.S. dollars), the report says.
It says that the country's raw steel output in 2007 is projected to be 462 million tons, up 10 percent year-on-year, eight percentage points lower than the growth in 2006.

Domestic steel demand will also grow by about 10 percent, indicating an equilibrium of supply and demand.

The International Iron & Steel Institute (IISI) predicted in an earlier report that the international steel market would see a balanced supply and demand situation in 2007, with steel prices remaining at a relatively high level.

IISI estimates global consumption of steel will reach 1.18 billion tons in 2007, up 5.2 percent on 2006.

Source:Xinhuanet