Mr Zhang Dechen an official at the Ministry of Industry and Information said on November 24, 2012, China's steel industry is experiencing the most difficult time from the past ten years.
In the first nine months 2012, large-scale steel mills lost CNY 12 when producing one-tonne crude steel, and the overcapacity is the root cause.
As administrative department, MIIT introspected the problem of overcapacity and is going to publish guidance's on merger and reorganization for key industries, and as for steel industry, MIIT encouraged cross-regional merger and reorganization, elimination of backward capacity and optimization of products mix.
MIIT also prospects to prompt the market role in allocation of resources to facilitate the industrial transformation and upgrades.
