Mr Zhu Hongreng chief engineer of Ministry of industry and Information Technology of PRC pointed out that China steel industry is to encounter tougher challenging in 2012 due to heightened unbalance between supply and demand arising from dwindling demand and further squeezed profit margin of domestic steel mills on rising iron ore prices.

He acclaimed on a conference that the slowed economic growth indeed proposed the task of speeding up industrial transformation and structural adjustment in front of us, while this presents to be a crucial practice to promote and the improve the quality and efficiency of economic growth.

Notwithstanding the current situation increased the market risk for domestic steel industry in the near term it could create a great time opportunity to push industry participants strengthen business system, upgrade and fix structural problems and finish the task of M&A and washing out backward capacity.

(Source: www.steelhome.cn/en)
China steel information centre and industry database