Iron and steel industry is the basic industry of national economy, which is technology, capital, resources, energy, labor-intensive industry, but also one of the industries with the most serious overcapacity and the biggest impact. In 2015, due to the decline of investment, the fluctuation of financial market and the geopolitical conflicts in many developing countries and regions, the global steel industry fell into an unprecedented predicament. The steel plants in Europe, Asia, North America and other major regions were all struggling, and their survival became more and more difficult. Affected by the decline of demand, the contradiction between supply and demand in China's steel market is highlighted. The price monopoly of imported iron ore is further increased, the price competition is increasingly fierce, and the pressure of environmental protection is increased. From the overall situation of the development of the steel industry, 2015 is a major turning year for China's steel industry, which is "painful and persistent". Under the condition that the contradiction between supply and demand has not substantially changed, it is difficult for the steel industry to have a good market in 2016, and the cold winter will continue.Since the turning point of steel output and demand in early 2015, the world economic recovery has been slow. According to the international iron and Steel Association, the global steel demand in 2015 is 1.513 billion tons, down 1.7% compared with 2014, and the global steel output is 127 million tons, down 4.1% compared with 2014. The global steel industry as a whole presents a situation of "three drops and three more". Among them, "three drops" means price drop, demand drop and output drop, "three more" means more production stops, more losses and more layoffs. "Three falls and three more" fully shows the difficult situation of the steel industry, and will force steel enterprises of all countries to carry out more transformation and development in the future in order to survive. As the world's largest steel demand country, China's impact on the global steel supply and demand situation is particularly critical. About half of China's steel demand is related to fixed asset investment. With the growth rate of real estate, manufacturing and other fixed asset investment declining, steel production and demand have turned around. According to statistics, from January to November 2015, the national crude steel output was 738.38 million tons, down 2.2% year-on-year, and the steel output was 1028.12 million tons, up 1%, down 3.5% year-on-year. According to the authoritative department, as the steel price continues to decline, the number of long-term shutdown enterprises increased significantly in 2015, with a total capacity of about 60 million tons. In 2015, China's crude steel output was about 806 million tons, down 2% year on year, which will be the first negative growth of China's crude steel output since 1981. At present, China's per capita crude steel output has exceeded 600 kg. According to the general law of the change trend of crude steel output in developed countries, it is speculated that after the crude steel output reaches the peak, it will show a downward trend after a period of fluctuation near the peak. Influenced by the less than expected recovery of the world economy and the increasing downward pressure of the domestic economy, the growth rate of China's steel downstream industries, such as construction, machinery and automobile, slowed down. In 2015, China's steel consumption dropped to about 668 million tons, down 4.8% year-on-year, the first decline since 1996. Due to the low entry threshold of iron and steel industry in the past few years, the homogenization of products is serious, most of them suffer losses and a few have profits. Especially in 2008, China's rescue policy and abundant liquidity, which mainly focus on real estate and infrastructure investment, stimulated the capacity investment in the steel industry, resulting in the current stage and structural overcapacity dilemma.