Insufficient demand will lead to the problem of overcapacity more prominent. The report pointed out that in 2014, the industrial raw materials are still severe, through strict control of the new, elimination of backward, greenhouse tube price demand and other measures to expand the easing, capacity utilization rate. But the overall level of productivity remains high.

Only steel, for example, had a crude steel capacity of 11.6 tons by the end of 2014. When the crude steel output 8.2 tons, year-on-year growth of 0.9%, year-on-year decline of 6.6 percentage points increased. Only 7.4 tonnes of crude steel were expected to be consumed in China, down 4 per cent year-on-year. Greenhouse tube price overcapacity problem still exists.

The report said that under the new economic situation, the problem of industrial raw materials and overcapacity will have a long-term year-on-year growth, which will force steel, petrochemical, non-ferrous metals, building materials and other industries to accelerate the transformation and adjustment. The consumption of raw materials will enter a peak peak area in the economy, the new normal period of profitability, steel, petrochemical, non-ferrous metals and other raw materials industry overcapacity problem will exist for a long time.

According to the news, in 2014, the growth rate of raw materials and industrial added value was 8.3%, the price of greenhouses was under financial strain, and the demand slowed down by 2 percentage points, to 2013, including petrochemical joint-venture plants, steel, non-ferrous metals, and building materials industry growth was 7.2%, 7.2%, 11.4% and 9.6% respectively.

The report said, from the raw material greenhouse tube price market demand, China's consumption will enter the peak peak arc area property management, in the past three years China's crude steel apparent consumption of 6700000000007700000007.4 tons, has shown a slow downward trend in acceleration.