Stimulus policies such as boosting......>

CHINA PRESS: Stimulus policies such as boosting infrastructure and encouraging

steel producers to expand production could undermine earlier policies focussed

on cutting overcapacity, reported Xinhua News Agency. Xinhua pointed to data

that China's steel output hit another high in Q1 following last year's record

high. Citing Qu Xiuli, VP of the China Iron and Steel Association, the Xinhua

report said that big increases in output would exceed market demand and squeeze

profits. Xinhua also cited Li Xinchuang, director of the China Metallurgical

Industry Planning and Research Institute, who said was imperative to establish a

long-term mechanism to prevent overcapacity in the industry.