Although the country is the world's largest steel producer, there is still more room for improvement, Pu Haiqing, director of the State Administration of Metallurgical Industry, said during the 2000 China International Steel Conference, which began yesterday in Beijing.

Over the past four years, the country's annual steel output exceeded 100 million tons, however, the low-grade steel products made up the lion's share.

"We must make more high value-added steel products to survive fierce global competition," Pu said.

After the country's accession to the World Trade Organization (WTO), the Chinese Government will have to lower its tariffs to 8 per cent from 10 per cent and remove other barriers on steel imports, which will create a great challenge for domestic steel makers.

The country will also need more high value-added steel products.

The country's steel sector's development strategy in the new century was the highlight of the five-day steel conference.

Pu said the government will accelerate industrial restructuring and concentrate its efforts on supporting the four most promising steel enterprises through technical upgrading and asset re-allocation.

The Shanghai-based Baoshan Iron and Steel Corp, the Capital Iron and Steel Corp, the Anshan Iron and Steel Corp in Northeast China's Liaoning Province and the Wuhan Iron and Steel Corp in Central China's Hubei Province have been at the top of the list.

The sector is also closing hundreds of small steel plants and phasing out obsolete equipment to create a favourable condition for key enterprises.

More than 50 billion yuan (US$6.02 billion) will be channeled into the sector's technical upgrading within the next few years.

"In the country's 10th Five-Year Plan (2001-2005), the sector will focus on the development of the high value-added products, including hot and cold-rolled thin steel plates, galvanized steel plates, stainless thin steel plates and cold-rolled silicon steel, to satisfy mounting domestic demand," Pu told the conference.

During the conference, six seminars concerning steel production technology, material supply and steel product trade will be conducted.

About 1,000 government officials, entrepreneurs and experts from 20 countries and regions attended the conference.

The conference was co-sponsored by the administration, China Iron and Steel Association and the Metallurgical Subordinate Council under China Council for the Promotion of International Trade.

(China Daily 05/08/2000)