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China may have world's biggest steelmaker
(Bloomberg.com)
Updated: 2005-10-03 14:26

Doubled Output

China, which has doubled output in the last four years, may produce 400 million to 450 million tons of steel in 10 years time, Dolle said in the interview yesterday.

This would represent a slowing in the current pace of growth as the country reins in expansion and closes smaller mills as part of its industry plan.

China's crude steel output will probably rise 25 percent this year, or the fastest pace in at least nine years, to reach 340 million metric tons in 2005, according to the median forecast from five analysts surveyed by Bloomberg. Output in 2006 may increase as much as 15 percent to 390 million tons, according to analysts including Shanghai-based Lance He from UBS AG.

``We've heard from China's industry that in the next five years they want to see the top 10 companies producing 50 percent,'' of the steel, said Lakshmi Mittal, chairman and chief executive of Mittal Steel, in an interview in Seoul yesterday. ``I believe it will happen.''

Mittal and Arcelor are seeking a foothold in China's expanding market by providing expertise and high-tech steel products in partnerships with local steelmakers. China's government bans overseas producers ``in principle'' from taking controlling stakes in mills, its planning agency said on July 20.

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