China’ s crude steel production rallied fast in the recent several months, while the net steel import has not changed apparently. The domestic steel market faces great pressure. In September, domestic steel index dropped dramatically, approaching to the lowest level in November last year. Industry experts warn that domestic steel enterprises should pay full attention to the demand and supply changes of the market, actively adjust the production and products structure to adapt to market demand.

Since this year, China’s steel production grew steadily. China’s crude steel output decreased 6.89% in H2, 2008, but the production amounted to 420mln tons in the first nine months this year, up 7.51% year on year. Thereinto, the daily output increased to 1.648mln tons in June from 1.329mln tons in Jan. and reached 1.69mln tons in September which inclined 32.97% from that in October last year, equivalent to 617mln tons of annual production. Luo Bingsheng, executive vice president of China Iron & Steel Association (CISA) believed that the steel enterprises and all departments should attach great importance to the fast growth.

The production increased, but the price presented down-trend. Data showed that since May this year, steel price rose and the price composite index reached 108.19 points in late August this year, but dropped to 102.65 points in September, which is basically in line with the lowest level of 102.3 points in November last year.

Industry insiders considered that the price drops directly attributed to the steel oversupply and the gloomy state of steel export. According to data from Customs, China exported crude steel of 16.723mln tons in the first nine months, down 98.3% year on year. However, owing to the falls of international steel price, China’s steel import surged. The import reached 18.09mln tons in the first nine months, up 36.6% year on year.

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