Chapter I   Introduction1.1.1 Background  Iron and steel industry is the basis of industry, technology, capital, resources, energy, labor-intensive industries, and it is also one of the most crucial industries for the domestic economy. Besides, its development become the symbol of the national economic strength and comprehensive national strength. At the present, our country is still in the fast industrilisation and urbanization. As a basic and raw material industry, it plays an key role in the development and adjustment of the Chinese economy. Widely known as the food industry , steel is an integral part of almost all industries. Furthermore, steel and iron industry can promote employment. Ferrous metal smelting and service industry including supporting industry, scientific research and trade industries need a great number of employees. For some industrial cities, steel and iron industry provide the major economic benefits.But now, the global financial crisis hit our steel and iron industry . From the short-term prospects for the steel industry, consumer confidence has fallen to a low point, steel demand sharply decreased and steel prices declined substantially. Also, the excess capacity , high costs, few marketing channels, bad financing and other existing problems make its situation worse. Due to the lower demand, steel prices fall sharply, business suffering from fund shortage, transformation and upgrading of the steel industry is still in the "throes". Meantime, enterprise production and management situation is very serious. 43708
After NPC and CPPCC, the environmental protection is strengthened,how? These policies force small and medium sized iron and steel enterprises to upgrade, That vigorous “environmental protection storms” in Hebei province forced many steel to cut or stop production. And a good number of steel and iron enterprises are requested to rectify and charged the sulphur dioxide fees and deducted desulphurization power price and suffer from financial sanctions. The iron and steel enterprises, especially small and medium steel enterprises, are even worse. Proliferation of small and medium sized iron and steel enterprises in China, accounting for 60% of the total capacity, compared with the large and medium steel enterprises, have technical weaknesses, and cannot afford to spend huge investment  on environmental protection projects.~吹冰!文:论;文'网www.chuibin.com

　　1.1.2 Objective of the research topic 

　　This paper attempts to study the current situation of the small and medium sized iron and steel enterprises from the the high costs, excess capacity ,the bad financing, too few marketing channels and the latest national policies. Also, some others study results and the questionnaire will assist the paper. My paper tries to inform the small and medium sized iron and steel enterprises of the comprehensive current situation and inspire them to come up with the improving ways .

　　1.2 Significance of the research topic

　　By studying the present condition of the small and medium sized iron and steel enterprises in some ways, we can analyze their existing problems to enrich the researches of such issues. Perhaps this research can help the small and medium sized iron and steel enterprises to adjust their measures to embrace an brighter future. In all, for the small and medium iron and steel enterprises, my paper tries to inform the small and medium sized iron and steel enterprises of the comprehensive current situation and inspire them to come up with the improving ways. For the whole economy, it will get better when the small and medium sized iron and steel enterprises can upgrade successfully as their profits really occupy a large part of our domestic economy. 

　　1.3Research methods

　　This research follows the rule of consultation of documents, collection of data and thorough studying and it integrates theories with practice. And then it will analyze and induce the data from the questionnaires.