Since 2014, due to the overcapacity of global steel production, steel prices have fallen all the way to the lowest value at the end of 2015 (as shown in Figure 1). 

After that, China began to promote structural reforms on the supply side, and the steel industry began to vigorously resolve the overcapacity of steel. According to the official data released by China, in 2016 and 2017, China has accumulated a total of 120 million tons of steel production capacity and banned the production capacity of 140 tons of steel. 

Since then, as the global overcapacity situation has eased and the global economy has recovered, the situation of severe steel production has changed. The global steel market has begun to pick up and steel prices have begun to pick up. 

As of May 2018, the CRU global steel price index reached 194 points, reaching a new high since 2011.