According to Mr Li Yizhong Minister of Ministry of Industry and Information Technology of the People Republic of China that China was now plagued by its serious overcapacity in the steel industry.
The source said now there were still 58 million tonnes of capacity under construction. Against such backgrounds, Chinese government was framing relative policies to close down out of dated steel mills and would strictly prohibit those mills getting out of line.
Mr Li said steel capacity in Mainland China had already reached some 660 million tons per year while with the actual demand of 470 million tons. In the mean time a lot of new projects were still under construction with total capacity of some 58 million tons per year. He said that "The problem will be intensified along with the slowing down demand growth. Chinese steel industry will come to a dead end at last."
Mr Luo Bingsheng vice chairman of CISA said the nation iron ore imports this year had already exceeded the actual demand by about 50 million tons, leaving no room for further rises. He said that “We believe that the recent price rise in iron ore market is largely influenced by the speculation on the market.”
Source: Steel Guru
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