China's steel output to top 780 mln tons next year

Standard Chartered forecast in a report China's iron and steel output may hit 780 million tons in 2011 and its steel consumption would reach 580 million tons. The report said China's steel consumption would rise by 9 percent year-on-year to 552 million tons this year and iron ore imports lift by 7 percent to 672 million tons. Despite the resolute stance by the central government to curb new capacity, the local authorities are heartily reluctant to crack down so hard on the sector deemed as a major source of local revenues. China now has an estimated overall steel capacity of 740 million tons with a utilization rate of roughly 80 percent.