In terms of total steel production capacity, the steel industry has clearly shown a state of oversupply. 

Chi Jingdong pointed out that "in the past three years, the data show that the release of crude steel production has been able to adjust dynamically with domestic and foreign market consumption. Crude steel production in 2015 was 804 million tons, in 2016 it was 810 million tons, and in 2017 it was 832 million tons. 

The production space that was cleared by the removal of 140 million tons of “ground bar steel” production capacity could be supplemented. There were no people there. Worrying supply shortage. 

From the demand side, apparent domestic crude steel consumption has entered the peak platform area since 2013. In 2017, China’s apparent consumption of crude steel was approximately 760 million tons. 

In the future, GDP will shift from high-speed growth to medium- and high-speed growth. GDP, unit consumption of fixed assets investment in crude steel fell, domestic crude steel consumption demand is unlikely to continue to increase.