Luo Bingsheng: Do not exaggerate the oversupply in iron and steel industry

SteelOrbis Shanghai Luo Bingsheng, vice chairman and secretary-general of China Iron and Steel Association, stated that the oversupply problem in China's iron and steel industry should be analyzed in a scientific and comprehensive way, and it should not be exaggerated. Besides, Chinese iron and steel enterprises will not accept any further iron ore price increase, he added. According to Luo Bingsheng, the production capacity cannot be simply defined by the total amount of the equipments, as the production of iron and steel industry is multi-processed and requires the utilization of various equipments. Generally speaking, 85 percent production capacity utilization can be accepted as normal. Mr. Luo stated that the regroup of iron and steel companies in different regions should be strengthened, and existing large scale domestic iron and steel enterprises should play the leading role. The foreign investment in China's iron and steel company should be carefully examined. Furthermore, the outdated production capacity should be gotten rid of. The production quality of steel mills such as Baosteel, Angang and Wuhan Steel is close and even at the advanced international level. On the other hand, the outdated and high pollutant capacity accounts for around 30 percent of the total production.