Released on = March 17, 2007, 4:42 am

Press Release Author = Shushmul Maheshwari

Industry = Industrial

Press Release Summary = The China Iron and Steel Association reported a two-digit
decline in China's steel exports from December 2006 to January 2007 and this trend
will probably remain throughout 2007.

Press Release Body = Xinhua News Agency reported Qi Xiangdong, Vice
Secretary-General, China Iron and Steel Association, saying that the reverse trend
in steel exports from Dec.'06 to Jan.'07 has been credited to slow production and
curtailments in tax rebates. Qi projected net exports of steel billets and rolled
steel to fall by 10 Million Tons in 2007.

The General Administration of Customs reported that 4.38 Million Tons of steel was
exported by China in January, up by 12.2% on 2006. However, the value came down by
21% from December 2006. China imported 1.48 Million Tons of steel in January, down
by 6.2% from the previous year.

Industry analysts believe that slumping steel exports are also a result of China's
government's concerns over the amount of trade disputes, if the country continues to
raise its steel imports.

However, the existing situations appear comparatively constructive for steel
production in the nation.

China anticipates to clock in around 460 Million Tons of crude steel production in
2007, a straight 10% growth over 2006, says the State Development and Reform
Commission.

In 2006, China's crude steel production reached 418.78 Million Tons, 18.48% higher
than the last year. The growth rate registered was 7.28% lower than 2006, which,
industry analysts believe, could be a reason for declining exports.

The Commission sources believe that the demand for automotive, transport, machinery,
construction, home appliances, petrochemical, shipbuilding, and electric power
sectors will remain strong in the next few years.

However, aggressive expansion of production capacity and continuous hike in prices
of raw materials, like iron alloy, imported steel scrap, and iron ore, will be the
key issues ahead for the steel industry, said the Commission sources.

According to the RNCOS report, "China Steel Industry Analysis (2006)", during the
earlier phase of rapid development, the industry has caused various structural
issues, including lack of industrial concentration, imbalanced product mix, and
overcapacity.

Dependence on imported raw material, FDI barriers, overcapacity, and import
restrictions are the main challenges for the China's steel industry.

The research report also discusses the structure of China steel industry, past and
current performance of the industry with statistical data, future projections and
trends, demand supply analysis, and opportunities and challenges for the industry.
About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM067.htm
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