The steel industry in China has been driven by rapid modernisation of its economy, construction, infrastructure and manufacturing industries. History 20th century The steel industry was small and sparsely populated at the start of the twentieth century and during both world wars. Most of the steel infrastructure was destroyed during the wars, and were using Soviet technologies. China lagged behind the western countries in its steel industry development even though they were using central planning techniques during the early days of communist rule. China underwent rapid economic industrialisation since Deng Xiaoping's capitalist reforms which took place in 1978. The steel industry gradually increased its output. China's annual crude steel output was 100 million tons in 1996. 21st century China produced over 1 billion tonnes of steel in 2022, 51.9% of the world's total production and up from of steel in 1999. After ascension to the WTO China aggressively expanded production for export and the growing appetite of local manufacturing industries such as automotive vehicles, consumer electronics and building materials. The Chinese steel industry is dominated by a number of large state-owned groups which are owned via shareholdings by local authorities, provincial governments and even the central authorities. According to China Iron and Steel Association, The top 5 steel groups by production volume in 2015 are Baosteel Group–Wuhan Iron and Steel Corporation, Hesteel Group, Shagang Group, Ansteel Group and Shougang Group. By 2008 raw materials such as Iron ore prices grew and China had to reluctantly agree to price increases by the three largest iron ore producers in the world; BHP, Rio Tinto and Vale. During the Global financial crisis the Chinese steel mills won price reprieves as demand from their customers slowed. When the demand started to pick up again in 2009 and in 2010, the price crept back up due to higher demand for automobiles, low interest rates, government fiscal stimuli around the world. Prices for iron ore were negotiated on an annual contract pricing scheme. Australian iron ore producers were not happy that iron prices did not reflect Spot market pricing. In 2010 pressure from BHP and Rio Tinto to move to a quarterly based index pricing succeeded. Many Japanese steel mills and Chinese steel companies had to follow as demand for raw materials heated up. Spot-basis pricing has caused problems for steel manufacturers such as exposing them to price fluctuation in the market and reducing the stability