As per the above information given the excess production of steel in China made Chaina to export it to other countries at lower prices. The following points can be noted to reduce the probability of loss in the long run.

1) Production should always be according to the demand, more the production and less the demand could lead to drip in prices.

2) Cutting the prices of the steel just for selling could lead to a huge loss in long run as the supply is expected to be at low price and once the price is increased the customer may not buy the product and product goes waste. It is important to maintain the stability of the price.

3) Having conflicts with the other countries on steel export could lead to loss, so begger have good agreement with the importing countries.

4) always evaluate the market and construction and produce the steel accordingly, as the steel can corrode, excessive steel production could be a loss.

5) Focusing mainly on the quantities rather than price and quality could lead to defamation of the country and the industry, this could seriously put the steel industry in loss.