Manufacturers of stainless steel from China don't expect the current half bright prospects
The global downturn in the economy and excess industrial capacity have certain difficulties in the second half for China’s largest stainless steel producers — the company believes Baoshan Iron & Steel Co. It is reported by news Agency Bloomberg with reference to the management of the company."We are not optimistic towards the current market, — said Mr. Lou Dingbo, Director of the division of stainless steel Baoshan. — State economies, including China, slow growth and new industrial capacity favor the growth of supply through the tightening competition."Net profit of stainless steel business division in the I-th half amounted to only 0.9% against growth of new industrial capacity of the company Lianzhong Stainless Steel Corp., Jiuquan Iron & Steel Group Co. Prices for stainless steel because of this decreased. Honorary Chairman of Stainless Steel Council Mr. Li Cheng said that stainless steel production Chinese companies can grow by 6.2%, to 12 million tons. But annual consumption of steel will continue to lag behind the proposal. In 2011, the growth of demand, as suggested by market analysts, will increase by only 7% (10 million tons). And this level of consumption growth, in their opinion, will continue over the next few years.