Daily Steel News - 26 Feb 2009

China’s 2009 steel consumption to increase by 40 million tons

According to a study analysis by the China Iron and Steel Association (CISA), the governmental “4 trillion stimulus package” and “top ten industries revitalization scheme” will push steel consumption of 2009 up to 430 million tons, increased by 40 million tons.It will focus on 4 industries – equipment manufacturing industry, shipbuilding industry, auto industry and petro-chemical industry. And the steel consumption of year 2010 and 2011 will also increase further benefited from the favorable policies.

European demand for steel drops by 40%
UK steel industry is now suffering the severe recession, which has not been seen in 30 years and steel output has plummeted to an unprecedented level since 1980.With the global economic crisis, steel demand from automobile and construction industries has plunged, forcing the worldwide mills to cut the output and jobs.According to the statistics, UK crude steel output fell to less 700,000 tons, down by 45 percent. And European steel demand has fallen by 40 percent, all the way down since 2008. Corus, the second largest steel corporation in Europe and ArcelorMittal NL-MT, the world’s largest steel company, both have cut the jobs and output in response to the recession.