China is determined to eliminate inefficient and excess industrial capacity. Officials told a news conference on Thursday morning the overall development of China's steel, cement and glass industry is healthy, and government's measures to adjust structure are beginning to take effect.

China's steel industry is shaking off the negative impact of the financial crisis. Production of crude steel was more than 470 million tons in the first ten months of this year, up by more than 10 percent, while the growth rate in the world is minus 13.5 percent. 70 key large steel enterprises have began to make up the deficits and earn surpluses since May. Profit in both July and August was more than 10 billion yuan.

Xiong Bilin, Inspector of Industrial Coordination Division, NDRC said "I want to emphasize that these positive signs are achieved against the backdrop of a sluggish international steel market and decreasing steel exports, so it's hard-won. The government's strategies and policies towards the crisis are timely and correct, the measures to adjust structure, boost domestic needs are effective."

Xiong also says market demand has created difficulties in eliminating outdated steel production.

Xiong Bilin said "Market demand is huge, so some inefficient enterprises are producing steel, since the threshold for some products is low. It makes the structure adjustment and industry upgrade more difficult, and increases the cost of macro control."

Xiong says the commission has informed local government to eliminate out-dated production, and asked for a thorough investigation. It's estimated that China will eliminate outdated steel production of 16 million tons.