Although the second quarter as the traditional shopping season, infrastructure construction, real estate, steel demand pull, but the yield was high again and again, whether it is the social stock, steel stocks are at a historic high, by the iron ore loose raw material prices and other factors, the price of steel uplink been inhibited the growth of steel consumption growth in the supply can not keep up, the entire steel market is still in high inventory, high-volume imbalance between supply and demand pattern, steel prices are still vulnerable to run, capacity excess, there has been no improvement in the fundamentals of the steel market oversupply.

China's steel industry is across the board into the edge of the loss, in the traditional shopping season, the steel market has not changed, capacity is still too large affect important reason for China's steel industry, according to the National Bureau of Statistics data, crude steel production in April 65.65 million tons, the average daily output of 2.1883 million tons, an increase of 49,700 tons from the March average daily production, growth of 2.32%; April average daily crude steel production of 2.208 million tons in February this year, second only to the second highest level.

For crude steel output to rise, not fall, the industry believes that, April domestic steel prices continue to fall, most of the steel mills have been transferred to the loss, but the magnitude of the loss has not hit a steel mill maintenance shutdown conditions, recent only a few contract organizations difficult steel mills to increase maintenance efforts, there was a substantial decline in the case of iron and steel enterprises to supplement low-cost raw materials to reduce production costs, and still maintain a high production in iron ore, coke and other raw material prices to minimize the consumption of pre-priced raw materials inventory. Another important reason is the commissioning of new capacity, according to data released by the China Steel Industry Association in January of this year, last year's national production of the 38 steel converter, new crude steel production capacity of approximately 45 million tons.

Total steel production capacity continues to increase, how to solve this capacity growing? Background in environmental protection, more and more government, public attention to energy saving and environmental protection as an important starting point, through access to the iron and steel industry threshold, to curb the the steel blind expansion, is most likely to become an effective means to resolve the overcapacity. However, China's iron and steel industry, eliminate backward production capacity more out of production the greater helpless reflect the local governments at all levels in the implementation of relevant policies, not the implementation of a real office, and steel enterprises in the implementation of "policy, measures "operational thinking.

The person in charge of the Ministry of Environmental Protection to inform the media on the 14th, the Ministry of Environmental Protection has organized and completed the year 2012 the provinces, autonomous regions and municipalities directly under the Central Government and the eight central enterprises total amount of major pollutants emission reduction verification, and desulfurization monitoring data falsification number of enterprises out ticket.

The announcement of the Ministry of Environmental Protection supervise the handling of 15 enterprises in Hebei Iron and Steel Group (000,709, stock it) on the list. It is understood that Hebei Iron and Steel Group is the nation's largest steel group, which was jointly founded by China's Tangshan Iron and Steel Group and Handan Iron and Steel Group two steel Group, combining the production capacity of over 40 million tons / year. In November 2011, Hebei Iron and Steel Group Palace Ssangyong Metal Products Co., Ltd. by claiming environmental law by the Environmental Protection Department of Hebei Province investigation.

How to solve the problem of these large companies can not take the lead in the field of environmental law-abiding solve the problem of repeated fine repeat offenders, the need to radically increase the punishment. The law should be more strict, strike out and punish violations. In fact, in recent years has been continuously strengthen the environmental punish corrupt officials, and even the implementation of environmentally friendly "one-vote veto" but the the illegal sewage problem is not been fundamentally resolved, local governments assessment indicators of industrial enterprises or profit-based, the need to implement the "one-vote veto". Overcapacity problem is the sore spot of the industry, is fatal, this problem is not solved, the increase in demand will be blind production growth eaten.