In steel consumption in the off-season for the first quarter of this year, steel trading enterprises and users are not optimistic market expectations, the steel market demand, steel prices have been low. The weakening of the market demand impact on steel prices have gradually emerged.

On the one hand, the lack of demand, the other hand, iron ore, coal, electricity and steel production have exacerbated the pressure of high costs of iron and steel enterprises withdraw materials and fuel prices high.

Branch of iron and steel "iron ore - steel price linkage report, 11 iron and steel products, including iron ore, since New Year's Day 2012, domestic and imported iron ore spot prices rose less than 4.5%, has been high increase in the varieties of steel. The difference between the largest varieties of iron ore and steel prices rose decline in iron ore - stainless steel compared to the previous of price difference between a near 12%,iron ore - the other varieties of steel Price difference has reached 6%. Form a larger pressure on steel prices.

The iron ore is the most important iron and steel raw materials, iron ore price change amplitude and China's steel product price change is closely related to. In the current iron ore price than iron and steel prices have gone down 6 percent, obviously the price of iron ore has been seriously jeopardize the profits of steel prices, analyst Xu Xiaokun that, if the latter steel demand is still no improvement, the decline in steel prices will upstream pass, forcing the iron ore price subsequently fell. Iron ore, 

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