Excess capacity does exist in some industries, such as the steel and cement, which brings difficulties for the export business of building steel manufacturers. And here, we mainly talk about the function of capacity release in the steel industry.
First of all, capacity release is one of the strategies to deal with the demand and supply, which is good for stimulating the enterprise vigor. Donghua Iron and Steel enterprise is one of the steel and packaging material manufacturers in China, which can supply you high quality hot rolled deformed bar if you are looking for similar building materials. Although, steel structure has been widely applied in high-rise and large-span construction projects, the steel industry still has not walked out from overcapacity and low-profit predicament. It is true that the continuing drop of steel price will increase its output so as to stimulate the release of overcapacity. In fact, huge potential market lies in some developing countries in terms of the sales of steel and other building materials, because these countries are in the period of seeking for higher development.
Overcapacity is not that horrible for companies in the steel industry. The most fearful thing is that they have no awareness to make change for the better. So if you are the supplier, please do something. But If you are the buyer who are going to buy alloy deformed bar, here can supply you satisfactory products.