China's Steel Output May Hit New High in 2010

DALIAN, July 13 -- China's steel output in 2010 might hit a new high of 620 to 630 million tons, a 10 percent increase year-on-year, Minister of Industry and Information Technology Li Yizhong forecast at a forum Monday.

China's steel output reached 269 million tons in the first five months of this year, up by 23.8 percent year-on-year, Li said on Monday at the National Steel Industry Forum held in Dalian, Liaoning province.

From January to May this year, China's fixed asset investment in its steel industry grew by 13.8 percent year-on-year to stand at 135.6 billion yuan ($20 billion), Li said.

Also, steel output is expected to be continually increased due to newly built steel projects, he said.

China, however, will not approve any new steel construction before the end of 2011, as the growing steel production capacity makes it more difficult for the country to save energy and reduce emissions, Li added.