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China cuts loans to curb steel overproduction: reports
Shanghai (AFP) May 14, 2009 China has told banks to curb loans to steel makers that are increasing production despite falling demand and falling prices, state media reported Thursday. Beijing issued the order to cut or stop lending to steel producers "still expanding production capacity without considering actual market demand", the China Securities Journal reported, citing an official notice. The notice, which was not released publicly, also called for banks to curb or cut off loans to mills with outdated technology, the report added. In addition, it told iron ore importers to "correctly control the volume and pace of iron ore imports in line with the actual demand of domestic steel production". China, the world's biggest steel producer and consumer, imported 188.5 million tonnes of iron ore in the first four months of the year, up 22.9 percent from a year earlier, according to customs data. State media reported Thursday the China Iron and Steel Association planned to investigate surging imports after April iron ore coming into China jumped 33 percent on year, hitting a monthly record of 57 million tonnes. "Amid the weakness in the domestic steel market, the imports in April were more than double the normal demand," the Shanghai Securities News reported, citing Shan Shanghua, secretary general of the industry group. At the end of March, the composite price index of China's steel market was 97.59 points, 31.4 percent lower than a year earlier, the association said in late April. Overall, domestic steel prices have been falling continuously and are currently lower than 1994 levels. China's demand for steel has seen a mild recovery thanks to relaxed monetary policies and Beijing's economic stimulus plans, but some makers boosted production hoping demand would soon soar again, the reports said. The World Steel Association has forecast China's apparent steel demand is likely to fall five percent in 2009 as the ongoing global economic crisis hits the country's exports. It would be the first fall since 1995, when demand tumbled 17.2 percent after a real estate bubble burst, according to the steel association. Share This Article With Planet Earth
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China focus on boosting domestic demand sees successBeijing (AFP) May 12, 2009 China's efforts to boost domestic demand to fight the global financial crisis showed strong signs of success Tuesday, with investment in infrastructure rising as exports fell. Analysts said the impact of a four-trillion-yuan (580-billion-dollar) package unveiled in November to stimulate demand at home had started to be felt as China moves towards an investment-heavy growth model. Exports ... read more |
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