China denies intention to dominate world's iron and steel supply
Updated: 2007-11-08 11:26
BEIJING - The Chinese government has reacted strongly to European anti-dumping applications against Chinese steel products, stating China's iron and steel industry would expand to satisfy domestic demand rather than to dominate the global market.
Deputy director of the Industrial Department of the National Development and Reform Commission (NDRC) Xiong Bilin said China would accelerate the closure of out-of-date steelworks and continue to boost the industrial upgrading of steel sector.
He said China had so far eliminated backward mills with an aggregate capacity of 11.44 million tons for iron and 8.73 million tons for steel.
This month, 18 provinces and municipalities will clinch responsibility pledges with the NDRC to advance the closure of out-of-date steel factories.
"If everything goes smoothly, the eliminated capacity for iron would reach 36.66 million tons by the end of this year, and for steel 35.69 million tons," he said.
The China Chamber of Commerce of Metals, Minerals and Chemical Importers and Exporters also released a statement Wednesday, calling the dumping charges by the European Confederation of Iron and Steel Industries (Eurofer) "groundless and not conforming to reality".
"China's rising output and exports of steel products were powered by the demands of domestic and overseas markets rather than the spread in local and overseas prices," said the statement.
Given that China accounted for one third of the world's crude steel output, if there was a global demand for the low-end product when no other country could meet the demand, market forces would boost China's exports, it said.
The chamber maintained the competitiveness of domestic iron and steel companies came from relatively low production and management costs rather than government subsidies.
As the prices for iron ore and shipping charges keep rising, the export prices for China's steel products were also constantly climbing and in some cases even more expensive than exports from other countries.
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