ABSTRACT
Steel industry is a typical capital intensive industry. Usually there is a financial and technical barriers in these industries, these companies need to have strong financial strength and technological power. Faced with the above requirements, it is obviously that a monopoly company is a more appropriate market structure. In a monopoly market, a few giant companies have a strong ability to control the market, and they can able to control the impact on the market by controlling production to ensure that the target price and monopoly profits. And the scale effect is obviously, the allocation of resources may be wilder. For the downstream and upstream, the purchasers and the suppliers of raw materials may have considerable influence; they can able to provide with different needs or different products to meet the fierce competition. This is the ideal mode of experience in the development of the current situation, China's steel industry has many problems, for instance, the concentration is still low, the lack of raw materials, the order of substantial imports, while we are unable to leading iron and steel output and prices, etc.
To speed up the development of China's steel industry, the steel industry policy under the guidance of the national steel industry is entering the reorganization period. Steel enterprises should be prudent in the choice of the reorganization path. After the reorganization, they become bigger enterprises, how to avoid some difficulty, we must as soon as possible to become harmony. These are the urgent problems to solve in the current course of reorganization of China's steel industry. The steel industry due to the deep-seated contradictions have continued to appear over supply, the steel enterprises have been more cautious in the treatment of capacity expansion and restructuring, the major domestic reorganization uses different ways, and also get great deal of diversity among its effectiveness.
In this paper, the current combination in the steel industry depend on actual situation, after the reorganization of the development, we should study its future development path.
Key words: industrial structure; mode of restructuring; future development
