Beijing Daily cited Mr Qi Xiangdong deputy secretary general of CISA reported that as seen for the moment, the glut in China’s steel industry remains to be periodic and reveals structural problem.

Accompanying excessive capacity is high social inventory. The nation’s steel product stock has reached 11.5mt, up 80% from a year ago.

But Mr Qi said the report saying the swelling stocks are threatening the industry like a barrier lake is sensational.

He added that "There was panic selling at the end of last year because of the raging crisis, but now, many enterprises have seen clear signs of recovery and hold optimistic. It’s a period of restocking."

Mr Qi noted that the steel industry requires a turnover to meet the demand from distribution.

Sourced from Beijing Daily

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