According to Mr Zhu Hongren general engineer and spokesman of Ministry of Industry and Information Technology, the China steel capacity has reached 660 million tonnes.

The engineer attended a meeting held recently in Beijing. The current capacity combines with the 58 million tonnes of new capacities which are under construction resulting in the total overcapacity of 200 million tonnes. Meanwhile, steel inventory in China has increased dramatically. In September, the inventory jumped by as much as 93% from the level in the beginning of 2009.

China steel prices saw a round of continuous increase during April to August then started to drop on the early of August.