According to statistics from the National Bureau of Statistics of China, in 2006, investment in China's steel industry fell 2.5 percent from 2005, the first time that there has been a decrease in six years. Insiders agree that this is a "landmark" after a period of strong investment.

From 2001 to 2005, there was a rapid increase in investment in China's steel industry, with the annual rate of increment above 30 percent, and exceeding 100 percent in boom periods. Investment in steel surpassed 716 billion yuan during the 10th Five-Year Plan period, and was 2.3 times that during the 9th Five-Year Plan period. The decline in investment can be seen as a positive response to structural adjustments in the steel industry. The steel industry is entering a "cooling off" period.

By People's Daily Online