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(Agencies)
Updated: 2008-02-19 13:46

China's consumption of crude steel in 2008 is expected to rise around 11 percent, representing an increase of some 44 to 50 million tons, the China Iron and Steel Association said in a statement.

Consumption of crude steel in 2007 was 434.36 million tons, up 11.87 percent.

The association expects crude steel production of 520 million tons this year, up about 6.3 percent.

China is expected to export around 52.5 million tons of crude steel this year, down 27 percent.

The association expects China to import 16 million tons of steel products and 220,000 tons of steel billet in 2008.

Production costs of Chinese companies are expected to rise further amid high prices for iron ore, power, coking coal. The cost of complying with environmental regulations is also rising.

China will further encourage the consolidation of the steel industry via acquisitions this year, it added.