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China's industrial body warns over rapid crude steel growth

Xinhua | Updated: 2018-04-27 23:23
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BEIJING - China Iron and Steel Association (CISA) has warned about the rapid growth of crude steel output over fears of renewed oversupply.

Crude steel output reached 212 million tonnes in the first quarter of the year, up 5.4 percent year on year. Daily output during this period hit a record high, data from CISA showed Friday.

The industrial body warned that rapid growth of crude steel output had weighed upon the steel market and could bring oversupply if production continued at the pace registered in March.

"Many steel plants profited from price rises last year, and they want to make more money this year. But they ignored that China's economic growth has transitioned from a period of rapid pace to a stage of high quality development," CISA secretary general Liu Zhenjiang said.

"With GDP growth target at around 6.5 percent, steel demand is not as huge as it used to be," Liu said.

Along with the crude steel output increase, steel and iron ore deposits also reached record highs.

Steel prices started to fall in January and only edged up a bit in April.

"Steel plants should rein in output rises and speed up destocking," Liu said.

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