China's steel sector has been successful in reducing productivity

China's steel sector has made significant progress in reducing and eliminating excess industrial capacity in the first six months of the year, while its ongoing efforts to curb pollution continue to bear fruit, experts say.

During the first six months of this year, the country produced 373 million tonnes of pig iron, 451 million tonnes of steel and 5.31 million tonnes of finished steel, up 0.5 percent, 6 percent and 6 percent respectively year on year, according to data released by the Association. China's iron and steel industry (CISA) on Wednesday.

CISA reported that during the six-month period, its members increased sales revenue by 15.33 percent over the same period, while net profit increased 151.5 percent to 139.3 billion yuan.

The industry was also able to reduce the overall level of debt. By the end of June, the debt-to-assets ratio of the SNGA members stood at 67.3 percent, down 3.9 percentage points year-on-year. Net accounts receivable decreased by 7.68 percent compared to last year, while net payables decreased by 6.51 percent compared to the same period last year.

Yu Yong, chairman of the association, highlighted the country's continued efforts and achievements in eliminating overcapacity and combating low-quality steel products.

“The elimination of obsolete capacity has helped improve the overall quality of the steel produced and helped balance market supply and demand,” Yun said, adding that the industry's oversupply problem is nearly resolved.