China's Steel Processing Industry Association issued a daily report on the operation of the steel industry shows that from January to September 2013, large and medium-sized steel enterprises completed sales revenue fell by 6.49% year-on-year. Losses in the loss of 26 billion 726 million yuan, 41.5 times more than the same period, the loss of 45%. The loss of the steel plate processing industry continued to increase.
China Steel Association data show that from January to September 2013, China's apparent consumption of crude steel 51.2761 million tons, compared with the same period, the growth rate fell by 9.73 percentage points. Among the major steel occupations, the investment in railway construction and real estate (newly started) development increased negatively, while the total output value (product output) of machinery, cars and household appliances industry increased weakly or declined considerably, and the weak demand situation of steel shopping malls remained unchanged. The low price of steel and the high price fluctuation of raw materials make the earnings space of enterprises shrink sharply.

At this stage, China is in the middle and late stages of industrialization, the demand for steel is huge, and the steel profession is facing a larger shopping mall space. As shown in the following chart, China's iron and steel industry property and sales planning showed a steady increase in the first half of 2007-2011.
In the first half of 2011, China's iron and steel professional property planning reached 4864 billion yuan, an increase of 16.41% over the same period of the year; the cumulative sales revenue of 3270.379 billion yuan, an increase of 28.96%.
On the one hand, China's steel demand brought about by the planning continued to expand, on the other hand, China's iron and steel enterprises are all at a low profit level. The main reason for the drop in interest rate of iron and steel industry is the overcapacity of iron and steel and the increase of ore prices.
On March 23, 2010, BHP Billiton and Japan's steel mills reached a quarterly pricing agreement, and the 40-year long association was abolished. China's steel enterprises are forced to bear quarterly pricing, monthly pricing, spot pricing and other pricing forms, iron ore prices continue to rise. In 2010, the three major mines made a net profit of $48 billion, which is 3.5 times the surplus of China's steel industry.
In the first half of 2011, BHP Billiton, Vale and Rio Tinto announced results that showed the three companies separately completed net profit of 13.1 billion US dollars, 13.3 billion US dollars and 7.6 billion US dollars, once again a big profit. According to the statistics of the National Bureau of Statistics, in the first half of 2011, China's steel industry completed a profit of only 80.5 billion yuan. The former is nearly 3 times the latter. Due to the increase in iron ore prices, China's steel enterprises imported iron ore in the first half of 2011 overhead costs of $16.117 billion. China's steel enterprises need to speed up the pace of disjointing iron ore constraints, steel enterprises need to speed up the upstream extension of the field, while increasing overseas mining development, in this regard, WISCO, Baosteel and other enterprises have achieved good results.
Overcapacity of steel plate processing and unreasonable industrial structure are the main reasons for the low profit of steel industry in China. During the Twelfth Five-Year Plan period, the steel industry will screen out 75 million tons of backward iron-making capacity and 48 million tons of backward steel-making capacity. At the same time, the reorganization and integration of iron and steel enterprises in the region has been promoted again, Hebei, Shandong, Guangdong, Liaoning and other regions have now formed a regional iron and steel group.
Experts estimate that by 2014, China's severe iron ore shortage situation will be improved; by then, the merger and acquisition integration of iron and steel enterprises will come to an end. It is estimated that at the end of 12th Five-Year, the surplus level of China's steel industry will rise.
July 28, 2015, China's Iron and Steel Industry Association held the third information conference in 2015, at which the "13th Five-Year Plan" period passed on the development of iron and steel career guidelines.
During the 13th Five-Year Plan period, the guiding principles for the development of iron and steel profession were determined as follows: dissolving overcapacity, carrying out large-scale structural reorganization, curbing occupational disorder competition, increasing product innovation, promoting green development, and encouraging enterprises to go out.
2015 is another difficult year for steel industry. Oversupply is still the biggest problem of occupation, and steel prices continue to hit a new low. Therefore, in the 13th Five-Year plan, resolving excess capacity will be a key point. China Steel Association believes that steel production capacity surplus will not be eliminated in the near future.
Zhu Jimin, vice chairman of the China Steel Association, leaked that the steel industry in the 13th Five-Year Plan will undergo a large-scale structural reorganization. Regional, large special categories, and structural reorganization of enterprises. Now the iron and steel profession is too lax, when the occupation is not good, the enterprise blind competition, disorderly competition.
Zhu Jimin said that the reorganization of steel enterprises is very difficult, but it needs to be promoted, otherwise it is difficult for them to get out of the predicament.
Now, the China Steel Association has established several industrial technology innovation alliances, steel innovation has achieved some results, but in terms of industrial transformation and promotion and industrial development needs, we need to further deepen.
Next, the iron and steel profession should rely on the established industrial technology innovation alliance, through the cooperation and collaboration between upstream and downstream industries, continue to promote the development and use of iron and steel products, focusing on expanding the use of high-end products, improving the use of steel products power, and promoting the reduction and greening of the whole life cycle of iron and steel products.