07.05.2001
Planning to build world’s largest blast furnace

• Development: China Steel indicated they would begin talks with the top five Japanese leading steel companies to discuss the possibility of joint venture to build the world’s largest blast furnace in southern Taiwan or Tai Chung Harbor.

• Analysis: A preliminary analysis report will be completed in August, however, we see strong opposition from environmental groups.

• Primasia View: We remain concerned whether the company will be granted approval from the government, and expect improvement in steel price to be slow in 2001due to global oversupply.

BennyLo@Primasia.com +886-[0]2-2547-8869