Discussion about Resolving Excess Capacity in Steel Industry

Abstract

Overcapacity in China ’ s steel industry and the resulting problems of lower profits, even losses and bankruptcy in iron and steel enterprises are serious. This paper summarizes the causes of overcapacity in the steel industry from three aspects of market factors, government factors and the mix of market and government factors. As the traditional method of demand-side management to resolve the excess capacity having been in trouble, this paper discusses the way to reasonably resolve the excess capacity of the steel industry from the aspect of structural reform of supply-side.