Steel famine likely to persist until 2006

ALAN PEAT
THE GLOBAL shortage of steel - largely the result of China’s booming economy – is causing concern among industries around the world.
The massive Chinese demand – with the country last year accounting for more than 25% of the world’s steel consumption – has created a worldwide steel scrap shortage.
According to an AFP report, analysts believe the shortfall may not be solved until 2006, when new steel-making facilities come on-stream in China.
The report added that Japanese industry in general was rushing to ensure stable supplies of steel from South Korea and Australia to overcome the shortage – and one of the areas of industry to be hit by the lack of this raw material is the country’s automakers, where production cuts have become necessary.