China Steel Industry Continues To Grow
The steel industry of China that enjoyed massive growth all through 2005 is projected to witness a slow growth pace in the coming years.
The Chinese steel industry is trying to strengthen its joint ventures with large overseas business-houses thereby, making a ground to reorganize the steel industry of the world.
Asian steel giants are very keenly looking for reasons to merge with world steel giants. This is because the large steel companies of the world have affirmed their mergers, which conveys the risk of hostile M&As (merger and acquisition) attempts in future. China's uninterrupted policies of macro control, which intend to lead in the overheated economy of the country, predict that fixed assets investments in China would not likely to exceed the 29.8 % growth rate reached in the first six-months of 2006 in the next few years.
Consolidation is the only way for the extremely fragmented steel industry to survive & sustain productivity. China will emerge as a key player in the next phase of consolidation that should make global players producing steel more than 100 MT.
The rate at which automobile, infrastructure, construction & consumption of white goods is increasing, there's no doubt that consumption of steel will grow strong in China.
Currently, China steel industry is facing the issue of overcapacity. Capacity is likely to touch 600 MT (million ton) a year.
The major calculated task for steel industry in China is to develop the structure & modify the current growth model. The steel industry of China should focus on the production quality instead of quantity.
For further information on Chinese steel market, read the report "China Steel Industry Analysis (2006)" published by RNCOS at: http://www.rncos.com/Report/IM067.htm
RNCOS is an industry leader in the field of online business research. We specialize in industry research on various business verticals. To read our other reports, visit us at: http://www.rncos.com/Report.htm or email us at info@rncos.com
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