Recently, the state council issued the guidance on resolving contradiction severe overcapacity "(hereinafter referred to as" guidelines "), to dissolve the iron and steel industry in the next five years serious excess capacity puts forward new goals and requirements.

People all know, of attention to the steel industry in recent years to cut capacity is the industry regulation norm, but in fact the results after each round of regulation capacity is to increase the capacity and without exception. To this, the relevant person in charge of the national development and reform commission, said the main policy measures taken in the past, too much rely on control and limit for examination and approval, always thought that control and limit for examination and approval will be able to solve the problem of excess production capacity. But a few years later, mounting overcapacity.