Steel, the Least Profitable Sector in 2010

Shougang Group chairman Zhu Jimin said the year 2010 was extremely difficult for the domestic steel sector that had recorded its lowest profit level in history because of excess production capacity and high iron ore costs.

Mr. Zhu noted in the next five years, the sector must energetically promote structure updating, notably in the field of product ranges, with the focus on quality and high performing products. Solutions must be found on issues such as how to reduce energy consumption in this sector so as to make the steel operations more environmentally friendly. We need to make the sector more consolidated in order to realize sustainable and intensive development, while enhancing its independent innovation ability and providing the manufacturing industry with farsighted services.