It is reported that Mr Jia Yinsong deputy director general of The Bureau of Economic Operations of National Development and Reform Commission while speaking at the 2008 council meeting of Heibei Metallurgy Industry Association said that China's steel industry is facing 3 tasks namely
1. Energy saving and pollutant reduction
2. Structure adjustment and
3. Swelling production cost this year.

Mr Jia said the structure adjustment in Chinese steel industry should be oriented to the development of domestic market as the government is encouraging industrial innovations, quality improvement, competitiveness increase and obsolete capacities elimination.

He said that “Energy saving and pollutant reduction is pretty a task in China, since energy shortage, resource hunger and environment protection are three bottlenecks that prohibit the development of China's steel industry. The core for energy saving is to restrict the growth of the total energy consumption and lower unit energy consumption while to reduce the emission of CO2 , SO2 , industrial smokes and dust is the key of pollutant reduction.”

He added that “Another major issue for Chinese steel industry is the skyrocketing production cost. Many factors dominate the rising tendency of steel production cost in 2008 including the swelling prices of iron ore, coal, coke, electricity and transportation; more over, tax imposition on mineral resources and wage growth mechanism will also cost enterprises more.