In a bid to protect the environment and achieve energy-saving goals, China eliminated 29.4 million tons of outdated iron smelting capacity and 15.21 million tons of outdated steel smelting capacity by the end of November.

A total of 344 iron and steel makers in 10 provinces, autonomous regions and municipalities, including Beijing, Hebei, Shanxi, Henan, Jiangsu, Shandong, Zhejiang, Jiangxi and Xinjiang, were closed, according to National Development and Reform Commission (NDRC).

"On one hand, the outdated production capacity has been eliminated. On the other hand, the newly-developed capacity has not been fully put into use, leaving a temporary gap between demand and supply," Qi said.

He estimated that exports of China's rolled steel may plunge 17 percent year on year amid a looming trade protective sentiment on the international market.

Last year, the country exported 62.65 million tons of rolled steel, a growth of 45.8 percent over the previous year. The growth rate, however, was 63.7 percentage points lower than the year-earlier level.

(Xinhua News Agency March 7, 2008)