Public letter to the Department, said yesterday that the new year, the steel industry should intensify its overseas investment, to establish a more extensive resource supply channels.

Previously, the National Development and Reform Commission had position, this year will continue to encourage domestic enterprises to actively involved in overseas oil and gas, mining and other areas, including investment resources, deep processing projects, etc., we will launch the relevant laws and regulations to encourage overseas investment.
"I think the Government's thinking is correct." "My Iron and Steel" net principal analyst JIA group, said yesterday, "I believe that our large-scale iron and steel enterprises in the country under the premise of a clear direction, must be the year a large-scale overseas investment activities, such as Baosteel, Wuhan Iron and Steel, Shougang and so certainly there will be big moves. "
JIA groups said that although the world economy will recover gradually this year, but relatively China, other countries and regions to resume slowly. Only China's steel output and demand on the rise, which means the price of iron ore and other resources will not even rise back to levels before 2007, so this year is the overseas investment of Chinese enterprises a good opportunity for resource-based products.

"In addition, China has abundant foreign exchange reserves, the future depreciation of the dollar is the trend, overseas investment will not only allow China to spend U.S. dollars, you can also let the Chinese conservation of resources, can be said to kill two birds." In the JIA group of opinion, the financial crisis on China's steel industry, once new opportunities for development. "This round investments are infrastructure, this investment has been follow-up to nature; the future China will also accelerate urbanization, the demand for steel will not be reduced."

Turning to the funding of overseas investment, JIA group that the "Wuhan Iron and Steel model" worthy of praise, and that overseas investment is certainly a large enterprise group with the bank to participate, "money is not an issue, the state would certainly support it, the key is whether there is a good project . the future of the Chinese steel industry is to invest in resource-based products mainly from overseas to build steel mills will not, because China in the short term will remain the world's largest market. "