Wednesday, October 05, 2005

Steel: Supply exceeds demand in China

Chinese steel prices have been falling since last April, a trend that one expert blames on insufficient demand and excessive market supply.

Wu Xichun, former chief and now an advisor of the China Steel Industry Association said: "Domestic steel output grows, so does the demand, but the output increases even faster."

He claims that disorderly competition among Chinese steel plants has caused this situation.