According to Mr Qi Xiangdong vice secretary general of CISA on 2010 Mysteel Annual Conference, that curbing overcapacity, promoting M & A and washing out backward capacity would be Chinese steel industry primary tasks in 2010. Mr Qi said though Chinese steel industry has had complete industrial system, there are also many problems. Blind investments, repeated construction, unreasonable production distribution and out of dated capacities become the main obstacles to the healthy development of the steel industry.
He said that though capacity about 15% higher than the real demand was normal, sheet and plate capacity far exceeded the real demand owing to medium and small steel maker’s quick expansion. Besides, the sheet and plate overcapacity was much greater than the long product overcapacity, that why price for sheet and plate was sometimes even lower than that of rebarand wire rod.
Another official from CISA made the comments that steel makers should give the first place to domestic steel market. Steel mills should adjust product mix according to domestic demand mainly. Heavily depending on the international market would be high risky.
Now, China is speeding up industrialization and urbanization. Thus, all the steel products needed during the process should be the possible goal of the industrial structure mix adjustment.