Boosted by the government's economic stimulus package, both crude steel output and consumption in China were expected to hit a record high in 2009, said Qi Xiangdong, vice secretary-general of China Iron and Steel Association (CISA).

The CISA estimated China's actual consumption in 2009 might top 500 million tons, and annual production may reach 600 million tons.

The overcapacity issue and cheap iron ore imports from Australia plagued China's iron and steel industry late last year and early this year.  The increased consumption alleviated the capacity issue, but how long can China's steel consumption maintain at this level? China's 500 million tons of crude steel production last year accounted for 38 percent of the world's total.  With 600 million tons of new production this year, China's share will be even higher.  When China's construction boom cools off, what about the excess capacity?