China steel juggernaut expands Asia turf as market in West fades

Shanghai

CHINA's steel juggernaut is picking up speed on its home turf.

As governments in Europe and the US limited supplies of Chinese metal they said was dumped on the market, the world's largest producer is expanding exports to its neighbours in South-east Asia. A third of all Chinese shipments now end up in countries such as Vietnam, Thailand and the Philippines, where rapid economic growth is fuelling increased spending on infrastructure including highways, airports and office towers.

South-east Asia's growing appetite for steel is helping to ease the pain of a global surplus that sent prices plunging last year. It is giving new life to unprofitable government-owned mills that China had sought to close. But rising imports also are over…