China's steel market crisis is deepening, and the impart of steep falls in demand has forced a major new 4 million tpy steel millto delay launch. Caofeidian, Shougang Group's project in northern China and one of the country'sflagship greenfield developments, will delay commissioning until the end of the year. Shougang confirmed the plan but would not confirm the reasons, although it is widely understood thatwith demand and prices in China fallingthrough the floor, now is a terrible time to launch a major new steel mill. "Commissioning under such circumstances will only lead to losses," said Xu Zhongbo, ceo with Beijing Metal Consulting. He doubted the project will be launched by the end of 2008,as the company suggested.
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