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Print[Ferro-alloys.com]As low-end overcapacity of Chinese steel industry was widely criticized, mid-to-high market was faced with the same problem. Investigation was made in Hebei Province recently, one of the major steel producing areas of China. It was discovered that many steel enterprises were constructing mid-to-high projects as central government tried to promote industrial upgrading and structural adjustment of steel industry. Small and backward capacity was being eliminated while large and advanced capacity boomed. As a result, steel overcapacity spread from low-end market to high-end market.
Reasonable capacity utilization was set at about 80% at present. Of the ten major steel varieties, only galvanized steel, steel bar and steel rebar could reach this utilization. Other steel varieties were in overcapacity. Utilization of profile, middle plate, wide hot-rolled strip and other high-end varieties was no more than 70%.
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