According to data, China produced 627 million tons of crude steel in 2010 with a yearly increase of 9.3%; furthermore, industry sources predicted that it would rise to about 670 million tons in 2011.
However, the government is aiming to put 60% of total steel capacity in the top 10 major state owned steel enterprises by the end of 2015. Furthermore, it has been planned to cut the steel enterprises to 100 by 2015.
According to the policy, the government has planned to limit the capacity in the coming five years, preventing the small independent mills from expanding.
In addition, the new policy has targeted to boost the cross provincial mergers and acquisitions which were prohibited by the local government.
( source: www.yieh.com )