China Steel Exports Expected to Keep Falling in 2009, Government Official

BEIJING, May 27 -- China's steel exports is expected to keep falling in 2009, with annual export volume no more than 25 million tons, according to Liu Gang, a senior researcher from the National Development and Reform Commission.

    Liu predicted at the Ferro-Alloys Conference that Chinese exports would deteriorate in the near term.

    According to Liu, China's steel exports will probably hit the lowest point in the third quarter. But it is still possible for steel prices to rebound in the second half year.

    China has spent the most part of its economic stimulus package on steel-consuming industries such as building industry and auto industry.

    Steel futures prices should be employed as a reference for iron ore price negotiation. But steel futures is still in a weak position in China and has a very limited influence on the market, Liu added.

    (Source: chinamining.org)