The global annual steel excess capacity, the amount of steel companies could produce minus the actual turnout in a year, kept worsening, dampening the whole industry's profits, revealed a US steel industry backed report issued.

Economic Policy Institute and law firm Stewart & Stewart said that the global steel excess capacity has reached 517 million tonnes in 2013, twice as much as the 229 million tonnes in 2000. The excess capacity reached a peak in 2009 at 579 million tons, as the world financial crisis reduced global steel consumption, but quite a lot of steel capacity was added due to governments' stimulus programs.

The excess capacity has fallen since 2009 but still kept at a historical high level, while persistently huge steel excess capacity has dampened the profitability of the whole industry.

Mr Risaburo Nezu chairman of the steel committee of Economic Cooperation and Development in December said that "High level of excess capacity clouds prospects for the industry's profitability."

Mr Nezu said that "As global steel demand is expected to grow slowly in the coming years and with many new investment projects coming on stream, excess capacity will continue to weigh on the operating profitability of the global steel industry."