Steelmakers continue capacity cuts

China's steelmakers need to press ahead with capacity cutting and deleveraging, despite the sector's strong performance in the first quarter of the year, an expert said.

Gu Jianguo, executive vice-chairman of the China Iron and Steel Association, said the entire industry needs to remain sober about the latest favorable results, as there is still not a solid foundation for the sector to realize sustainable returns.

Steel companies should continue to avoid "near-sighted behavior", and avoid expanding output blindly, Gu said at a news conference on Wednesday.