Outline: In the H1 of 2014, the capacity utilization rate of global crude steel kept above 76% and began decreasing since July. In No vember, the number was down to 73.5%. The extent of overcapacity became more severe. OECD Steel Committee held the meeting in Cape Down of South Africa on Dec 12 and deemed overcapacity as one of the most important challenges faced global steel industry. China and US specially discussed the overcapacity problem during the 25th JCCT held in Chicago during Dec 16 to 18.

MPI’s comments: Global steel industry faces the big challenge of overcapacity, especially for the regional. In the process of dealing with steel overcapacity, China must comprehensively consider to bring this issue under the global background. Chinese steel industry has scored great achievements after decades of years’ development. As a traditional and advantageous industry, there hasn’t been enough space for the further development of Chinese steel industry at home. Chinese steel industry needs to explore high-efficient, feasible and win-win international cooperative platform and mechanism and to seek the new method of solving the overcapacity based on advantageous industry “going abroad”.