By rights, many companies should have closed. Instead, they march on like zombies, China’s industrial undead.
China simply makes too much steel. The government estimates that China’s annual production is about 100 million tonnes more than it should be, a figure equal to the whole annual output of the industry in the United States.
Worse, China has far too many steel companies, more than 700 at last count. Add in iron companies and companies that roll or otherwise shape steel, and the total comes to more than 7,000. Despite repeated government attempts to force them to consolidate into fewer, bigger companies, most of them are still small and inefficient.