WCA May 2007

Industry News

Steel output in China set to rise by 17% in 2007

China will account for almost a third of the total world production of steel in 2007, and consume nearly all of its additional output, according to a special report included in the Global Sectors Outlook (December 2006) from Euler Hermes, the world’s largest credit insurance group and part of Allianz. Chinese output should increase by 10% in 2007 – three times more than its nearest rival, Japan. Main end- user markets for Chinese steel include construction (55%), capital goods (12%), automobiles (5%) and household appliances (2%). Even with its increased capacity, China will need to import steel in order to keep up with demand. Brazil, Russia and India, who together with China make up the BRIC alliance, will also increase steel production in 2007, assisted by modernisation of production apparatus, cheap labour, and access to natural resources including iron ore, essential to the good running of blast furnaces for cast iron, for which they account for 65% of world production.

“The exponential growth in steel prices has not resulted from a traditional imbalance between demand and supply, but rather from the explosion in upstream raw material prices such as those for iron ore and scrap,” explained Mr Philippe Brossard, head of research for Euler Hermes SFAC. “China’s voracious appetite for commodities helped to tighten the market: on its own the country will this year account for more than 40% of world iron ore imports, mainly from Brazil and Australia. “Even so, a lull in steel prices seems likely in 2007, with prices slowing from the second half of 2007 in line with the slowing of the world economy.” Steel sector forecasts are founded upon the microeconomic expertise of Euler Hermes group underwriters and analysts, who closely monitor risk in companies worldwide through its network of 30 local subsidiaries.

Euler Hermes SFAC – France Fax : +33 140 705 017 Website : www.eulerhermes.com

New machine for testing railway springs

Guilin Wintime Testing Machine Co Ltd, China, is an expert in load testing, with nearly 15 years’ experience of manu- facturing spring testing machines, torsion testing machines and universal testing machines. The company recently developed the TCD-C computer controlled spring testing machine, for testing railway springs with maximum load capacity of 600kN, to meet the requirements of updated national standards of suspension spring testing, according to the European standard.

Guilin Wintime Testing Machine Co Ltd – China Fax : +86 773 5811 057 Email : wintime_1@hotmail.com

The new TCD-C spring testing machine from Guilin Wintime Testing Machine Co Ltd ▲

Website : www.wtmtest.com

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Wire & Cable ASIA – May/June 2007