Although the task exceeded production capacity this year is a foregone conclusion, but in the current situation, annual steel consumption, crude steel production and pig iron production increased or flat compared to last year. 12th metallurgy industry planning Research Institute report released in 2017 China's steel industry will enter the "loss development", 2.2% to 788 million tons crude steel production will fall.

Figures show in 2016, 1 to October, China's crude steel production to 673 million tons, an increase of 0.7%; essentially flat iron production in 2015.

"Actual consumption of steel also rose slightly this year, mainly thanks to the auto industry growth exceeded expectations. "Metallurgy Planning Institute's Director, at the press conference, said Li Xin, next year, construction, machinery, household appliances and energy industries, such as steel demand will decline in automobile, railway industries, such as steel demand will increase, but not enough to spur growth. 2017 total steel demand is expected to be slightly down 1.5% to about 660 million tons.

Report predicts that in 2017, China's crude steel production of about 788 million tons, compared to fall 2.2%; production of 669 million tons of pig iron, up to fall 3.2%; demand about 1.057 billion tons of iron ore, up to fall 3.2%.

"The steel industry into ' reductions ' are inevitable, meaning that after 10 years in the future and more difficult period. So far this year, despite a sharp correction in steel prices, but industry-wide profits only around 1.2%, there are 27% iron and steel enterprises losing money, achieve the industry off the hook development responsibilities. Not because prices pick up, shake the determination of capacity. "Li Xinchuang said.

Report said that the 2017 global steel consumption will grow from 0.6% to 1.534 billion tons, Asia is still the world's largest steel consumer. 5-15 years in the future, will maintain its growth in global steel demand.