Chinanews, Beijing, Mar. 22 – According to a recent report released by the National Statistics Bureau, in 2006, investment in steel industry dropped by 2.5%, the first decline in past six years. Many analysts say that Chinese steel industry now meets its turning point after years' of high investment growth.

 

“Investment in steel industry has finally begun to cool down,” many industrial analysts said, as reported by the China Securities Journal.

 

A report by the China Metallurgical Industry Economic Development Center shows that from 2001 to 2005, investment in steel industry kept increasing rapidly. The annual investment growth rate in steel industry reached 30% year on year and exceeded 100% at peak time. During the Tenth Five-Year Plan period (2000-2005), the total investment in steel industry was 716 billion yuan, 3.3 times that of the investment scale in the Ninth Five-Year Plan period (1995-1999).

 

The fast increase of investment in steel industry now has come to a close. In future, investment in steel industry will grow rather steadily, analysts said.