The United States has warned China to resolve steel overcapacity, reiterating it is hampering global markets.
US Treasury Secretary Jack Lew, who is in China before an annual convention between American and Chinese to talk over security and trade, said excessive supply could greatly affect the Chinese economy.
He added misallocation of resources would prompt the sector to sell steel at a much lower price than the supposed market price.
Lew mentioned steel oversupply has impacted the industry, specifically the entities that market aluminum and steel, and the global markets as well.
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