Beijing: China'sstainless steel output jumped 68 percent year on year to 5.3 million tonnes,ranking the first in the world, according to figures released by the ChineseSpecial Steel Association.

In 2006, Chinaaltogether imported 2.5 million tonnes of stainless steel products, down 20.13percent, and exported 904,000 tonnes, surging 122.64 percent year on year.

The growth of China's stainless steel output andexport will not constitute big threat to foreign industries, said Li Cheng,president of the stainless steel branch of the Chinese Special teelAssociation.

China'shuge domestic demand for stainless steel is still on the rise, absorbing mostof its own supply, Li said.

In 2006, China'sper capita consumption of stainless steel exceeded 4.6 kg, higher than that of Britain.

"ast year, 60 percent of China's stainless steel consumptionwas dependent upon domestic supply,"the Chinese Special Steel Associationsaid.

"It is impossible for China to become a net exporter ofstainless steel in the short run,"said Li.