Our country has a land area of 9.60 million square kilometers and has a population of 1.3 billion, equivalent to 1/5 of the world population. How many steel needed in the "11 five-year plan"? According to national economy and development plan, the steel consumption in 2010 will reach 470 million tons (steel products 440 million tons); China Iron and Steel Association recommends steel consumption of 490 million tons (steel products 470 million tons); while according to the development plan of every province and city for "11th five-year plan", it is predicated that the steel consumption of 2010 will reach 560 million tons (steel products 530 million tons). In view of the rate of increase of fixed investments in every place this year, the projects in construction are still in large scale. This year and next year will not have large decreasing amplitude and the import and export won't have big change. So it is quite capable that the steel consumption of 2010 exceeds 500 million tons. Furthermore, the current fixed investment and technological transformation cost in iron and steel industry still exceeds 200 billion yuan, the speed of increase is a little slower but there is no negative growth and the steel productive capacity is destined to exceed 500 million tons.