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[Ferro-alloys.com]Dominated by the stimulus policy of Chinese central government, several provinces took investment measures to stabilize economic growth. According to the plans released recently, investment of local governments had exceeded RMB 10 trillion (USD1.61 trillion). Many participants took this round of investment as a life-saving straw. However, according to the investigation of www.ferro-alloys.com, these projects are generally stock items but not incremental items. There are fundamentally different from the 4 Trillion Plan of 2008. These investment projects are mainly on inter-city railway, highway,water conservancy facility,municipal facility and other infrastures. They are generally conductive to economic growth,structure adjustment and citizen livelihood.

It is likely that steel enterprises could not reverse disadvantaged situation and they have to seek a new way out. According to current production level, overall crude steel output will be about 720 million mt this year. On the demand side, downstream industries are still weak, especially real estate industry and automobile industry, which could elevate demand for steel significantly.

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• [Editor:Mike.zhang]