China had produced 5.3 million tons of steel in 2006. With the increase in demand for stainless steel, the domestic production of steel in the country is also expected to rise

As per report, “China Steel Industry Analysis (2006)” published by RNCOS, “China is the world’s biggest supplier and consumer of steel. With support from government and the development in the economy, it has become the heart of global steel manufacture and the production of steel will stabilize in the coming years. The increasing demand of steel in the country has led to the development of this industry the local premises as well. Broadly speaking, most of the steel is consumed in the construction, automobile and machinery sector.

According to the news published on ForexTV , the International Stainless Steel Forum (ISSF) claimed that the production of stainless steel worldwide, is expected to go up by 5.1% in the year 2007, recording to a total production of 29.8 Million metric tones, with china leaving behind other global steel manufacturers.

A Brussels-based organization in a conference in Kyoto, on 21 May, said that after the steel growth mounting by 17% in 2006, it is ready for a yet another increase. It is expected that steel production will go up to 29.8 million tones in 2007. This increase will be followed by a production rise in Asia by 12% (leading to a total steel production of 16.85 Million), followed by china and India, as per the news published on liveMint.

President of Shanxi Taigang Stainless Steel Co., Chai Zhiyong, said in news published on liveMint.com, that the annual production of steel is expected to increase by 40-50% than the prior year.

The demand for stainless steel used to manufacture household utensils and buildings, is growing gradually with the increase in production of stainless steel. According to ISSF reports, the steel production of china crossed Japan in its steel production, as its national steel production increased by 68%, producing 5.3 million tones of steel in 2006.

China produced 418 million tones of steel in 2006, which accounted to more than one third of the amount of steel produced globally. Approximately 212.88 Billion RBM (26.95 Bn US$) is invested in the heavy industry sector. The country has shown tremendous improvement in its production and technology in the steel sector over a span of 10 years. Additionally, it is also improved upon its competency with other steel manufactures

Analysts believe that even though the steel production in China has shown escalating trends in the past two years, the local steel consumption will not reach its pinnacle before 2010.