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Article: CHINA'S STEEL INDUSTRY FACES FUND SHORTAGES.
- Article from:
- AsiaPulse News
- Article date:
- August 26, 2008
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BEIJING, Aug 26 Asia Pulse - China's steel industry is facing fund shortages due to growing price of raw materials and investment in iron ore projects, according to analysts.
The soaring cost of iron ore and coke enhanced steel enterprises' demand for fund. The price of iron ore increased between 65 per cent and 96.5 per cent this year.
In addition, huge investment in merger and iron ore projects led steel enterprises in demand for capital.
China's domestic mining industry invested more than US$10 billion overseas in 2007, six times as that of 2005, according to the data released by China Council for the Promotion of International Trade.