According to insiders, crude steel capacity of Baoshan Iron and Steel Co Ltd may increase to 33 million tonnes from 26 million tonnes in the end of 2010 with new growth in cold rolled sheet.

Currently, cold rolled sheet sales took up 40% to 50% of total sales with increasing possibility.

It is estimated demand from downstream industries will keep firm increase in 2011 with main demands from automobile, appliance and mechanical industries taking up 20%, 12% to 15% and 3% to 5% respectively. In addition, slowing demand from construction and real estate may offset by rising construction of affordable houses, given inadequate offset.

Moreover, appreciation of RMB may be favorable for importing iron ore but unfavorable for exporting appliance and mechanical.

(Sourced from MySteel.net)
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