Currently, the global steel overcapacity is the problems of long-term structural, rather than the market cyclical problem, the steel industry leaders need take strong measures to cut the excess capacity, or the steel industry can not be reborn.

According to the research data from Morgan Stanley's, it is estimated that steel overcapacity production is 334 million tons in the global, of which China excess is about 200 million tons.  In the next five years, the world's steel production is likely to increase about 3%, and it means that if no action is taken, the overcapacity situation will continue to exist.

The traditional method of solving overcapacity is business combination, But there isn’t enough healthy iron and steel enterprises who are willing to acquire unhealthy corporates. Overcapacity is a chronic problem in China.

                                                                               XINSTEEL NEWS