China steel industry may be in red in 09 -Baosteel

SHANGHAI, May 16 (Reuters) - China's steel industry may post a loss for 2009 as overproduction persists in a weak global market, Xu Lejiang, the chairman of China's largest steelmaker Baosteel Group, told reporters on Saturday.

He added that Baosteel, parent of Shanghai-listed Baoshan Iron and Steel Co (600019.SS), would pursue further consolidation and restructuring to bolster its competitiveness.

The government of China, the world's largest steelmaking country, has vowed to crack down on producers that continue to raise output despite an oversupplied market. (Reporting by Helen Ding and Edmund Klamann; Editing by Alex Richardson)