The State Development and Reform Commission said an oversupply of steel in the mainland, the world's biggest producer of the metal, may in turn depress prices and hurt steelmakers' profits, and warned that the industry can't blindly pursue growth, The Standard reported. Crude steel output grew month on month from January to June and investment doubled in the second quarter from the previous three months, the paper quoted National Development and Reform Commission as saying. "The steel industry is highly reliant on energy and water, we can't blindly pursue growth today at the expense of the future's resources and environment," the statement, which was dated Tuesday, said. The closure of small iron and steel mills "should be speeded up.” The commission's statement was issued as Baoshan Iron & Steel, China's biggest steelmaker, posted a 27 percent decline in second-quarter profit Tuesday. "Steel products markets face the risk of retreating," the Shanghai- based company said, citing new real estate policies, pressures for a strengthening yuan, and rising international protectionism.