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Growth in steel industry slows
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The steel industry has seen 2 decades of ferocious growth. But that's all history now, according to Baosteel, China's largest steel maker in terms of production volumes.

It says supplies outstripping demand since 2006 have put the entire industry under considerable pressure. Moreover, with falling export demand, and rising costs rising since the start of the year, steelmakers have had to cut prices to stay profitable.

Baosteel has slashed prices twice since August, with other major manufacturers being forced to follow suit. But Baosteel also says a slowdoen provides good opportnities for mergers and acquisitions within the industry. And this could mean a better distribution and use of available resources.

Steel-makers were the strongest performers in last year's top 500 firms in the country, generating the biggest slice of profits for 2007.

(CCTV October 5, 2008)

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