Steel output up just 3 pct

China is expected to witness 723 million tons of crude steel output this year, only a 3 percent increase compared with the same period last year and the lowest growth rate since 2000, Zhang Changfu, secretary general of the China Iron and Steel Association, said at an annual meeting about China's steel market outlook Saturday.

Fixed investment in the steel industry has totaled 414.27 billion yuan ($66.32 billion) in the first 10 months of this year, up 3.9 percent compared with the same period last year, Zhang said, adding that the increasing investment will aggravate current production overcapacity.

Large steel enterprises have cut production but the output of small and medium-sized steel companies is expected to surge by around 20 percent year-on-year in 2012, Zhang said.