In recent years the growth in steel demand to promote the rapid development of the domestic steel industry. Annual crude steel production in China for many years ranked first in the world.

Data show that in 2011-2011, China's crude steel production 695 million tons, 717 million tons and 717 million tons respectively, the rapid development of steel industry by before turn to slow growth, production of iron and steel enterprises from extensive to intensive conversion become the trend of The Times.

According to the iron and steel industry and market analysis firm MEPS global steel production report, released in China in 2013 to 779 million tons of crude steel production in the world first, accounting for 48.5% of the world's crude steel production.

Due to the iron and steel industry development faces the domestic economic downturn, iron ore and other raw materials prices high, competitive product homogeneity, lower steel prices, such as cash-strapped adverse factors