Reportedly, Chinese government’s policy of consolidation for steel mills has continued pushing production reduction in its steel industry.

According to data, China produced 626.7 million tons of crude steel last year, which was an all-time high; thus, it has alerted the government's attention to limit capacity by phrasing out inefficient productions.

Meanwhile, the ten largest steel mills of the country accounted for 48% of the nation's production in 2010; also, about 179 million tons of production capacity was shut down last year.

According to the saying of China’s Ministry of Industry and Information Technology, their goal is to keep tight control of expansion in highly energy-consuming and polluting industry.