BEIJING, March 16 (Xinhua) -- China's crude steel output rose by 23.1 percent from last year to reach 74.25 million tons in the first two months of this year, according to the National Bureau of Statistics (NBS).

Despite factories suspending production for the Spring Festival, China produced 36.13 million tons of crude steel in February alone, an annual rise of 20.1 percent, according to the NBS.

China's crude steel output surged by 18 percent year-on-year to 419 million tons in 2006.

The China Iron and Steel Association (CISA) previously forecast that the country's crude steel output would grow by 10 percent this year, reaching 462 million tons. The figure was revised to 475 million tons, up 13 percent, but, based on the output during January and February, the figure could rise further.

Analysts fear the huge output will result in a large surplus and put the domestic market under great pressure.

This year's crude steel output will be about 60 million tons more than last year and that might increase the pressure on the domestic market, Xu Xiangchun, information executive of Langesteel.com, was quoted as saying by China Business News.

According to Xu's estimates, China will have approximately 10 million tons of surplus crude steel output this year.

Xu said the pressure could only be eased if the steel enterprises with out-of-date production facilities and technologies were eliminated.