As per a Beijing Business News report, Mr Wu Jianchang deputy director of China Iron & Steel Association has suggested not to invest more in China's stainless steel sector as it is facing overcapacity following plague of the same over crude steel.

Mr Jianchang during the 5th China International Stainless Steel Conference said that hectic investment in stainless steel has formed a capacity that is beyond the current demand and even that of the near future. He thus suggested to shift the focus to expanding stainless consumption from investing, the domestic demand especially.

Mr Wu advised that “We should, above all, cement the existing market, and then actively broaden it. First, popularize stainless articles' consumption in rural areas and raise that in the richer regions; additionally, meet demand from the expanding industries and manufacturing sectors, such as power generation, petrochemical, IT, automobile and shipbuilding etc, as well as construction. Thirdly, try to open up the potential markets.”

In 2006, China's apparent stainless steel consumption and output both topped the list across the world and among the 10 million tonne capacities, Taigang, Baosteel, ZPSS and Lianzhong accounted for up to 60%, representing relatively high concentration.