In contrast, some small and medium-sized steel enterprises were operating at full capacity between mid-April and the end of August when steel prices rose.

According to Li Xinchuang, executive vice director and chief engineer at the China Metallurgical Industrial Planning and Research Institute, in the first half, investment in infrastructure construction stimulated China's economic growth and about 55 percent of steel consumption went to the infrastructure construction sector.

Infrastructure construction mainly consumes long steel products, which are mainly produced by small and medium-sized steel enterprises, while large and medium-sized enterprises mainly produce steel sheets and plates.

Moreover, the sharp decline in steel exports has also created a difficult situation for large and medium-sized steel enterprises.

However, this situation is not expected to last long. At present, most of China's infrastructure construction uses reinforced concrete structure, which damages the environment.

For example, 30-40 percent of the reinforced concrete used to build overpasses in many cities is wasted. This outdated construction method provides many opportunities to small and medium-sized steel enterprises.

Therefore Li believes that China should raise construction steel standards, and lead China's steel enterprises to continue improving product lines and avoiding low-level competition.