Steel consumption is expected to be weakened this year, especially in the remaining months, said an official with the China Iron and Steel  Association.

   He made the remark on the basis of three factors, which have exerted impact on iron and steel industry, namely macroeconomic control, abandonment of outdated iron and steel production capacity and export restraint.

   Firstly, China continues to adopt steady monetary and financial policy this year, and makes efforts to cool down investment in fixed asset. Under the effect of these policies, China's consumption of steel products will go weak this year. Steel consumption is estimated to fall about 13 percent.

   Secondly, the slowdown of steel production caused by shut down of some outdated production facilities and small plants will help improve the situation of overcapacity of production.

   Thirdly, steel export will maintain or below last year's level, and steel import will keep relatively stable. China's export of steel products faces various control measures from the state, such as cut of export rebates, and levy of duties.

   China has ordered to eliminate blast furnaces of less than 200 cubic meters, and rotary and electric furnaces of less than 20 tons by the end of 2007.