It is reported that some medium and small sizes mills in Henan suffered big profit squeeze from the second half of last year because of financial crisis, according to Chairmen of Hebei Steel, Mr. Wang Yifang.

He also added that steel mills in Hebei province have to cut production by 20~30 percent under current situation.

Some steel mills have been closed because high pollution against the state policies, not because of the market changing. Mr. Wang said Hebei Steel tried to improve production efficiency by its inner adjustments.