According to a plan posted on the Ministry of Industry and Information Technology website, China steel industry will not only face opportunities of restructuring and upgrading but also challenges of higher cost, weaker demand and greater environmental pressures in the next five years.
The whole industry is expected to see slow growth and low profit and annual consumption of crude steel might reach 750 million tonnes in 2015.
China crude steel production leaps to 630 million tonnes from 350 million tonnes during 2006-2010 an annual growth rate of 12.2%. However, the country's capacity for independent innovation is still far behind advanced economies.
According to the plan the steel sector will step up industrial consolidation and intensify its concentration, with the top 10 steel firms accounting for 60% of the country total steel output by 2015 up from 48.6% in 2010.