Contrasting fortunes for steel, cement sectors

The 4-trillion-yuan economic stimulus plan and the abolition of some steel tariffs may not be enough to spur China's steel and construction materials industry, analysts said.

The Chinese government announced the stimulus package on Sunday to boost domestic demand, while the State Council yesterday announced it would cut tariffs and raise tax rebates on 3,770 export items, including some steel products.

Such measures, analysts feel, could provide immediate cheer to steelmakers, but in the long term they still have to grapple with an industry-wide downturn.