Steel firms to take the reins

 The Ministry of Metallurgical Industry reported on Sunday that in the first 10 months of this year, China's steel output reached 57.99 million tons, a 6 per cent increase over the same period of 1990.

However, the increase is on a par with steel consumption, which is increasing this year, according to Wu Xichun, deputy chief engineer from the ministry.

Wu said after the State re-adjusted the price of State-controlled steel last February, production and economic efficiency of steel enterprises had improved. The number of large and medium-sized iron and steel enterprises operating at a loss decreased from one-third of the total at the early part of this year to onefifth.

He also disclosed the State had decided to reduce the mandatory planning quota for iron and steel production next year by 11.2 per cent compared with this year.

The measure is aimed at prompting steel enterprises to manufacture goods according to market demand and enhancing their competitiveness, Wu added.