China plans to cut steel production to 115 mln tons, down 10 pct yr-on-yr

BEIJING (AFX-ASIA) - China is planning to cut domestic steel production by 10 pct to 115 mln tons this year to prevent oversupply and stop the fall in price which started in last year's fourth quarter, the China Daily quoted Shi Wanpeng, vice minister of the State Economic and Trade Commission, as saying.	    Although the State Council's Development Research Centre forecasts that domestic demand will rise by some 6 pct this year from last year's 140 mln tons, Shi said that price will start to fall if the government fails to exercise tight control on production to prevent oversupply. 	    Production by large and medium-sized steel companies will be watched closely and the government will continue closing down small and low-level plants this year, he said. 	    Some 73 factories have been shut down so far in 2001 out of a total 103 planned closures. 	    Shi said that with slowing global demand for steel, domestic producers will find it more difficult to export this year, particularly given the dumping charges put in place by the U.S. and the EU. 	    Although exports in 2000 doubled to 11.3 mln tons, the SETC expects little if any growth this year. 	    The government will "strictly control" steel imports to alleviate pressure on domestic producers which have faced stiff competition from cheap imports from Russia and the Ukraine.	    Last year, steel imports rose 22.5 pct to 20.7 mln tons. 	    Shi said this year, China's steel industry is likely to see profits around the same level as last year's 13 bln yuan. 

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