Research and Markets: Rising Prices of Iron Ore, Coke, Coal and Other Raw Materials...

Research and Markets: Rising Prices of Iron Ore, Coke, Coal and Other Raw Materials Are the Main Factors to Push up Chinese Steel Prices in 2008

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/bc47a3/chinas_steel_indus)
has announced the addition of the "China's Steel Industry Research
Report 2007-2008" report to their offering.

In 2007, China's crude steel production was 487 million tons, up
15.63 percent year on year. The global crude steel production was
1.316 billion tons, up 8.2%. In terms of the rapid growth of Chinese
steel production, at the end of 2007, the proportion of China's steel
output of the global output from 34.66 per cent in 2006 to 37.04 per
cent in 2007.

In the first two months of 2008, output of crude steel was 70.45
million tons, up 6.4% year on year. The growth rate declined sharply
year on year for two reasons: one was the limitation of production
capacity expansion, another was lack of raw material.

In 2007, the export of steel was 62.65 million tons, an increase
45.55 per cent year-on-year, 16.87 million tons of steel imports, down
8.98 per cent year-on-year. The proportion of exports has declined
from 15.47% in April 2007 to 9.6 per cent. The expectation of
proportion of exports will be around 10% in 2008.

At the first two months of 2008, export volume of steel has
declined sharply, steel exported 7.25 million tons, 17.24% cumulative
reduction. Steel imported 2.68 million tons, 0.74 percent less than
the corresponding period.

In 2007, steel industry had a significant achievement, the total
income of large and medium-sized iron and steel enterprises was
1.99107 trillion yuan(RMB), an increase of 32.81 per cent
year-on-year, total profit was 144.74 billion yuan(RMB), up 49.54%
year-on-year, sales profit ratio was 7.3%.

The rising prices of iron ore, coke, coal and other raw materials
are the main factors to push up steel prices in 2008. Demands: the
increment of global iron and steel is mainly from China, and domestic
demand will remain strong. In addition, in terms of the planning of
the State Development and Reform Commission, until 2010, there will be
shutdown nearly 100 million tons of steel of the backward production
capacity, which would have a tremendous impact on the future supply.

Key Topics Covered:

1 Supply: an obvious slowdown in the growth rate

2 Consumption

2.1 Analysis of Import and export

2.2 Domestic demands will be slow down

3 Prices

4 Profitability Analysis

5 Potential elements affect Chinas steel market

5.1 Increasing cost

5.2 Demand remains strong

5.2.1 Export

5.2.2 Domestic demand

5.3 Exchange rate - the appreciation of RMB

5.4 Policy factors

Charts

For more information visit
http://www.researchandmarkets.com/research/bc47a3/chinas_steel_indus

Research and Markets
Laura Wood, Senior Manager
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
press@researchandmarkets.com

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