Mr Li Shijun chief analyst of China Iron and Steel Association pointed out that"The development of China's steel industry should innovate more than reducing capacity and output in the late stage of industrialization."
China's steel output in 2011 hit new high again while the profit ratio of sales recorded new low on the contrary.During the 12th Five Year Plan period,the demands growth tended to slow down and the oversupply continues to grow.
Mr Li Xinchuang president of China Metallurgical Industrial Planning and Research Institute said that global financial crisis had a profound effect in light of the international environments and the economic recovery seemed to be a long and tortuous way.
In terms of demands,China's steel industry is suffering severe winter as the growth in fixed-assets investments plummeted sharply.
Mr Li Xinchuang emphasized that China's steel industry should improve the products quality with innovation and conduct capacity expansion cautiously,in a bid to develop international items properly.He said that"Under current situation,we should stimulate domestic demands,improve innovation ability and promote transformation on economic development mode instead of increasing exports and accelerating investments merely."
