THYSSEN KRUPP: If you can Lift it,you can Steel it
maywillow - Thu, 30 Dec 04 :
NEW YORK (Reuters) - China's voracious demand for steel has tempered of late, stoking fears of industry oversupply and falling prices as China becomes a net exporter of steel, its domestic demand slows down and global steelmaking capacity rises, the Wall Street Journal said on Thursday.
Steel demand in the world's most populous country has increased only by about 5 percent a month recently, compared with average increases of 26 percent a month in 2002, 2003 and early this year, according to the newspaper.
It also reported that, at the same time, steel production in China is expected to rise 22 percent in 2004 and another 14 percent in 2005 -- and last month the country posted net steel exports after being a net importer the year before.
These shifts in the Chinese economy, and others in the future, might force the country to dump excess supply on the worldwide market, sending steel prices down as quickly as they have soared, the Journal said.
Falling prices could benefit manufacturers, builders and consumers but hurt the U.S. steelmaking industry, according to the Journal. U.S. steelmakers have only recently started to recover on the back of strong global demand, the weak dollar and the effects of high raw material costs.
