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To: craig crawford who wrote (304)	6/20/2001 10:50:03 PM
From: craig crawford	Read Replies (1) \| Respond to of 1643

Air Conditioner Steel Market Promises Huge Potential (Jun 20) chinaproducts.com As production of air conditioners in China keeps expanding, the steel consumption has grown apace. The air conditioner output was 5.2 million units in 1995. It rose to over 18 million in 2000 and is expected to reach 25 million by 2005. There are more than 70 air conditioner producers in China at present and the combined annual production capacity is 22.5 million. Steel claims about 10 percent of the total production cost. Of over 600,000 tons of steel consumed in 2000, 32 percent were cold-rolled plates; 34 percent were galvanized plates; and 28 percent were hot galvanized plates. China May Localize Production of Air Conditioner Steel China may localize the production of all air conditioner steel by 2005, experts predict. Over 80 percent of the steel consumed by air conditioner production are made domestically. The homemade cold-rolled plates account for over 70 percent; hot electro-galvanized plates, over 90 percent; and electro-galvanized plate, over 60 percent. Homemade cold-rolled plates can well meet the requirements of Chinese air conditioners, but the quality is still interior to foreign-made ones. But electro-galvanized plates are in short supply as only Baosteel can produce it. According to experts, production of air conditioners is seasonal and in order to reduce the occupation of capital, air conditioner makers usually make short-term procurement and are inclined to purchase homemade ones. 3 Major Kinds of Steels for Air Conditioners Three kinds of steel are used to produce air conditioners: cold-rolled plate, hot electro-galvanized plate and electro-galvanized plate. Usually stress is given to corrosion resistance, the ability for deep punching and coloration in addition to surface quality and shape. Most preferable are plates 0.8-2mm in thickness and 1,219-1,250mm in width. (Xinhua)