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 both the country's production volume and apparent consumption of crude steel would exceed 565 million tons this year, while the actual consumption might top 500 million tons.

The government's economic stimulus package has helped domestic steel industry counter the impact of shrinking global demand, he said.

China produced 500 million tons of crude steel last year, accounting for 38 percent of the world's total.