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New steel projects encounter falling demand in China
It is reported that China's new steel projects have found it difficult to stay optimistic amid the slowdown of demand.

As per report, Ansteel Bayuquan project, which was officially launched in early September 2008, is likely to produce only 500,000 tonnes of steel by year end, down from originally planned 1.2 million tonnes. Shougang Jingtang project, which was ignited in October 2008 and scheduled to produce 4.85 million tonnes of crude steel by year end, is expected to produce very moderate amount. Handan New Space project is operating normally since it has to make up production loss from a headquarters’ blast furnace that was halted for maintenance.

The central government’s CNY 4 trillion stimulus package will have a substantial impact on demand for steel and the steel industry’s performance. But the current falling demand is having an immediate impact on the operations of these new steel projects.

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