Last year was a record high for China's steel industry, but the excessive capacity also caused big price fluctuations in the market.

China expects the 2006 global iron ore price to return to the level previous to the dramatic price hike.

Such a phenomenon is abnormal.

The overcapacity problem has provided a very good opportunity to promote restructuring in the steel industry.

We are aware that our trade rows with other countries are expected to grow with the rapid growth of China's steel exports. We hope to resolve disputes through negotiations.

If we produce more than the target, the output will exceed demand, which will hurt everybody's interests.