Wednesday, September 29,
Steel demand growth in China, the world’s biggest steel market, will revive by early 2011, said Jose Carlos Martins, Executive Director of ferrous metals at the world’s top Iron ore miner Vale.
“I see demand slowing for two or three months, and then growing again. We need to prepare for growth again by the end of 2010 or in early 2011,” he added.
Chinese steel demand appeared to waver in recent months after the government took steps to dampen the property market and there was a hint of slower expansion in China’s car industry.
But Baosteel, a top Chinese steel mill, said earlier this month it would raise its widely watched prices in October, signaling an apparent tightening in the market.
That may have been because China’s steel supply has slipped along with its demand. Government efforts to hit a five year energy-saving target that expires at the end of 2010 have prompted a crackdown on power-hungry steel mills, trimming production in several provinces.
However according to Mr. Martins,”The impact is not so big. Iron ore demand is good, customers are taking their volumes, we have seen no impact on sales. We’ve been going full blast since last year. We don’t intend to stop because once in a while the market stops a little bit to take a breath.”
Source: Reuters
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