China, which is dependent on import of stainless steel at present, is likely to face an overcapacity situation in coming years. Mr Chen Chuanping, chairman of the Taiyuan Steel Group while attending the annual meeting of the stainless steel industry held recently, warned that the production capacity of stainless steel in China ought to be controlled by restricting the building of new projects. According to Mr Chen, China’s stainless steel production capacity is estimated to reach more than 10 million tons annually. Industry insiders pointed out that if the growth of the country’s stainless steel capacity is not put under control, the overcapacity will cause strong side effects in the next two years. As per estimates China will produce 4.5 million tons of stainless steel in 2006 to become the largest producer of SS in the world.
