Cisa, steel prices will fall because of excess production capacity and lower iron ore prices

China iron and steel industry association, vice President of Wang Xiaoji, said China's steel prices is expected to fall sharply this year, because there have been overcapacity problem, and the main raw material iron ore prices also fell. Expected in the next few months trend will not change, because of excessive production capacity and the consolidation is too slow; Meanwhile the excess supply of iron ore problem also increased, predict will continue to lower the price. Steel overall demand this year, he said, may be flat or slightly increased in 2012, and added that the industry prospects or the second half of this year will be slightly better. Cisa has said it is one of the biggest challenges facing the industry overcapacity. Overall China's crude steel production capacity of about 1 billion tons, far above last year's total output of 7. 16. 5 billion tons. Wang Xiaoji said cisa has been with China's National Development and Reform Commission and ministry of environmental protection, formulate by improving the environmental standards eliminated high pollution of small steel mills, and to help plan for overcapacity problem.