Charting the right strategies fora leaner, profitable steel industry

With overcapacity and weak demand putting the sector in the red, the government is taking drastic steps, reports Du Juan.

The deep reforms that China's steel industry is undergoing, following years of weak demand and severe overcapacity from the country's rapid development, are a positive signal, experts said.

"The expansion impulse in the steel industry has stopped," Wang Xiaoqi, deputy head of the China Iron and Steel Association, said on Aug 21.