By Li Bu　

Date: 2004/11/22

Abstract:    

During the third quarter, the policy of macro control continued to show its effect. Fixed asset investment increase in the steel industry dropped back substantially, and over-heating of investment noticeably subsided. Strong demand for steel products led to rapid growth of steel output. Import continued to decline, and export continued to grow. On the other hand, shortage of electricity and strained transportation systems held back effective supply of steel products. Price hikes in steel products reflected the real scenario between supply and demand in international and domestic markets. Prices for steel plate and section will continue to rise in the fourth quarter, but prices for construction steel products will drop. Prices for steel products will fluctuate at a high level. The government should strictly implement all the regulatory policies concerning the iron and steel sector to facilitate the shift from "high exhaustion" growth pattern to a more "economical" growth pattern, and speed up the structural adjustment in the sector and the reorganization of iron and steel enterprises.