According to the report, the market analysis of the UK’s commodity research unit (CRU), predicted that the crude steel production would grow 1.5% to 140 million tons in the next five years, which was almost equivalent to steel demand growth prediction. Therefore, they expected the steel market would gradually improve from the aspect of demand.

In recent years, China has closed 260 million tons of steelmaking production since 2014, the steel production still kept balance, but the capacity utilization was jumped from 70% to 85%, which boosted the profitability in the Chinese market.

They also explained that the above situation would be driven capacity utilization in other regions of the world, and even improved profitability.

However, China's steel capacity utilization rate had dropped to 80% this year and profitability had also dropped to 7% or even lower with the new capacity emerging.