China News Service cited Mr Luo Bingsheng vice chairman of China Iron & Steel Association at a mining forum held in Kunming as saying that China steel industry should grasp the rare opportunity at the moment and undergo a strategic adjustment.

Mr Luo said the problems in the country steel sector such as overcapacity due to blind investment, weak innovation ability, unreasonable industry layout, low industry concentration and scattered enterprises, little control of resources especially iron ore as well as chaotic circulation.

He said that favorable factors have increased on account of government efforts since Q4 of 2008. Apparent consumption of crude steel swelled 10.1% in the H1 of this year hence China steel industry should seize the opportunity and carry out a strategic adjustment.

Mr Luo suggested steel sector strengthen scientific innovation technical reconstruction, boost obsolete capacity elimination, advance reforms especially M&As of steelmakers and increase competitiveness.

(Sourced from China News Service)