The Panzhihua Steel Company, the largest steelmaker in west China increased both steel and iron output last year.

Despite shortages of raw materials and electricity, the company produced 5.34 million tons of iron and 5.37 million tons of steel, rising 6.6 percent and 8.4 percent from the previous year. Officials with the company attributed the increases to technological innovations, market promotion and improved management.

The revenue of the steelmaker, based in southwest China's Sichuan Province, hit 16.8 billion yuan (US$two billion) with profits of 700 million yuan (US$84.3 million) and exports of US$138 million.

In 2003, the country produced 210 million tons of steel, up 15.38 percent from 2002.

Though China's steel production and consumption increased rapidly in the past two years, experts say China's steel consumption will reach its peak in 2010.

Since 2001, China's consumption of steel has increased by 30 million tons annually to reach 250 million tons in 2003.

(Xinhua News Agency February 2, 2004)