The rapid growth of steel capacity encouraged by the loose monetary policy eventually triggered what the CISA called the sternest campaign ever to curb excessive capacity nationwide. In an emergency notice to local authorities that oversee the industry and large steelmakers across the country, the Ministry of Industry of Information Technology (MIIT) suggested that commercial institutors cut or suspend loans to the steelmakers that blindly ramp up capacity regardless the real demand. According to the latest statistics, 72 key medium and large mills produced 127.4 million tons of steel in the first quarter of 2009, up 1.4 percent year-on-year; while crude steel apparent consumption stood at 126.3 million tons during that period, indicating a persistently weak demand and obvious overcapacity. “It is a very dangerous expansion for lack of demand.” said Shan Shanghua, president of the CISA.