China is expected to see 4 percent growth in crude steel output in 2012, Zhu Jimin chairman of Shougang group said on Tuesday
Crude steel produced in china in 2011 was 683 million MT which was 8.9 percent more from the previous year 2010, but the crude sector is concerned about falling demand growth from key steel using sectors i.e. construction and automobiles.
The benchmark China steel futures also fell putting a pause to the five-day climb on Monday as the demand outlook worried investors after Beijing cut its growth target to 7.5 percent in 2012 in order to slow the economy.
According to the poll conducted of industry analyst, the total steel output was likely to increase 5.8 percent i.e. 728 million tones this year which has now been cut to 4%.
Big state owned mills in china have been struggling with declining margins caused by indifferent steel demand and high raw material prices.
Zhu, who is also chairman of china iron and steel association industry body, said global iron ore prices were heading downwards now.
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