Chinese steel industry starts to suffer from overcapacity again

The overcapacity issue has again come to the fore in several industries in China including the steel industry, as widely reported in the Chinese media.
 
Accordingly, many domestic steelmaking programs are proceeding without official approval from the government, resulting in the recurrence of the overcapacity issue.
 
In 2005, China's crude steel output was 352 million mt. In 2010, the crude steel output volume reached 620 million mt. Given the rapid growth of steelmaking projects, it is expected that China's annual crude steel output in 2011 will reach 690-700 million mt.