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INTERVIEW - China steel demand to level out after 2008; overcapacity threatens.
(From Xinhua Financial News - China Focus)
SHANGHAI (AFX-ASIA) - China's seemingly insatiable lust for steel is likely to taper off following the 2008 Olympics in Beijing, leading to overcapacity as the flood of money currently pouring into the sector finally overflows, an industry consultant has warned.
Neville Tindale, Asia-Pacific president of Canadian engineering firm Hatch Beddows, said that Chinese steel demand will remain healthy over the next few years. But this is unlikely to last as the country's economy moves further up the development chain.
Within a few years, he said, the country's consumption trends will be more in line with those of the developed world meaning that production, set to come online in the coming years, could find itself underutilized. …
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