Mr Luo Binsheng executive vice chairman of China Iron & Steel Association made a speech, at a steel conference, on international and domestic environment facing Chinese iron and steel industry and the developing trend. He pointed out that there are 5 crucial missions in Chinese iron and steel industry.

1. To strictly control over speed increase of steel production and to move the emphasis of industrial development to adjusting and optimizing product mix and to increasing quality and profit. China’s crude steel output in first three months in 2007 was 124.94 million tonnes up by 8.6% YoY which was much slower than the growth rate of 15.66% in 2007 because of restricting policies and more factors affecting steel production. At this rate, it is expected that China’s crude steel output may be 42 million tonnes in 2008 which complies Chinese macro control policy.

2. To actively boost innovation and new products exploitation oriented by market demand, in order to overall increase steel products quality, to develop and expand the production of steel varieties which are short in domestic market and to satisfy the demand from domestic market development. On the basis of increasing products quality, we should increase and enlarge the quantity and proportion of high technology and high value added products, in order to replace the import and to upgrade and optimize product mix in the whole industry.

3. To continue to control steel export volume and move the keystone of our work to optimize export product mix. We should raise technology content and value added of exported products and actively replace the import by domestic steel products at the same time.

4. To strengthen energy saving, emission reduction and environment protection.

5. To accelerate interregional mergers of steelworks, to construct international super steel groups and to raise industrial centralization. Meanwhile, we should accelerate outdated capacity elimination.