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China steel industry struggles

Xinhua reported that although China's steelmakers saw a big rise in profits last year, the industry still has overcapacity problems that have dragged prices to record lows.

The China Iron and Steel Association revealed that China's major large and mid sized steel firms reported CNY 30.4 billion in profit in 2014, a sharp rise of 40.4%.

The association attributed the growth to lower fuel prices and cost cutting.

Despite the rise, the CISA cautioned that China's economic slowdown and optimized structure is increasingly dampening appetite for steel products, adding more pressure to a sector already struggling with overcapacity. China's economy grew 7.4% in 2014, the weakest annual expansion in 24 years.