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By Gong Zhengzheng (China Daily)
Updated: 2007-07-31 09:15

In the first half of this year, crude steel production in China rose 18.9 percent to 237.6 million tons.

Luo predicted full-year production will climb 14 percent to 480 million tons.

The expected export slowdown in the second half will add supply in the domestic steel market, which could generate a glut and cause price tumbles at home, he said.

Related readings:  Steel export growth to slow down  Gov't to maintain restraints on steel exports  China hits high in steel output A state curb just the ticket for steel

"Steel companies should cut excessive production to keep the domestic market stable," he said.

At the end of last month, international steel prices were 35.9 percent higher than in the domestic market on average, according to the steel association's data.

According to a government plan, steel production capacity of 35 million tons will be removed in China this year.

January-June crude steel consumption in the country climbed by 9.6 percent to 206.9 million tons. Luo said consumption will total 446 million tons this year, up 12 percent.

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