Experts call for steel capacity cut

China's steelmakers should avoid expanding production capacity continually, setting the scene for a subsequent decline in price in the second quarter, with excessive inventories, experts have warned.

The sector's mills churned out a record quantity of steel in April in spite of falling orders, an industrial index showed.

"The move is nearsighted and high inventories must lead to falling prices of steel products and a decline in profits," said Zhou Yusheng, a professor at the Central Iron and Steel Institute, China's biggest research and development institution in the metallurgical sector.