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China's iron and steel industry in 2012 chilly. According to Chinese media reports, China's crude steel production in 2012 was 716.54 million tons, a year-on-year growth of 3.1%, the growth rate down 5.8 percentage points compared with the previous year. Throughout the year in Steel Association Member iron and steel enterprises realized a total sales income of 3.54411 trillion yuan, a year-on-year decline of 4.31%; profits of 74.089 billion yuan, down 54.33%, a profit of 1.581 billion yuan, down 98 .22%. Annual cumulative loss of 23 enterprises, an increase of 15, 28.75% of the loss, the amount of loss of 28.924 billion yuan, an increase of 7.39 times. You could say that the lack of market demand, the capacity is too large, steel prices plunged into extreme difficulties in the steel industry. China Iron and Steel Association Vice Chairman and Secretary-General Zhang Changfu said on January 31. Iron and steel industry, winter cold pressing, to both overcapacity, vicious competition and long-term issues such as the moment facing hardship. It is understood that in 2012, China's major steel industry, the completion of the railway transport investment year-on-year growth of only 2.4%; completion of the road transport industry investment growth of 6.6%, down 3.2 percentage points; national real estate development and investment growth rate down 11.7 percent; shipbuilding industry three indicators shipbuilding completions fell 21.45%. At the same time, China's steel industry, grimace intensified. The low price of steel, imported iron ore prices remain high, and devour the meager profits of the iron and steel enterprises. Even more amazing is that sometimes imported iron ore price inflation is not caused by the changes in the relationship between supply and demand, but caused monopolize the market artificially pushed up the price. It is understood that from mid-December 2012 to late January of this year, imports of iron ore prices rose by $ 115 / t to $ 159 / ton, calculated in 1.6 tons of iron ore per tonne of steel production, equivalent tons the steel rising costs 422 yuan, while the domestic market steel prices rose only 106 yuan / ton. This is very normal, and has caused CISA highly concerned will one day come to an end if a market monopoly. Said Zhang Changfu. Zhang Changfu said it expects better operating environment in 2013 the steel industry in 2012, there will be some growth in steel demand, but this year's difficulties and challenges should not be underestimated. To be fully in accordance with the market mechanism, promote the merger and reorganization of the steel industry, eliminate backward production capacity, to resolve the overcapacity. Steel synergies that will further strengthen the industry run detect and industry self-regulation, to regulate sales practices. At the same time, continue to promote the iron ore spot trading platform to promote fair trade.