Steel trade merchants often say "built as long as 32 days, built to the end of March or May." This words is Yes, domestic steel market shouted built end has shouted has is long has, but, in needs bad and policy surface continued good of game Xia, domestic steel market of trend over and over, and has further fell of risk, recently, Baosteel Group in forbearance has three months Hou, finally on July of steel factory price made has sharply cut of decided, this has may will on recent steel price of built end up to flames of role.
　　 According to understanding, dang Sha steel, and Hebei steel, mills have put afternoon and cut steel of factory price Shi, Baosteel Group to flat disc of potential alone led dominated the three months, then on has many people guess had, in domestic steel city needs more weak of status Xia, what is what let Baosteel Group so strong? value June mid-, in strong has three months zhihou, Baosteel eventually also is admit defeat has. From June 11, Baosteel announced in July the price policy, hot rolling, pickling, Puleng, hot-dipped galvanized steel factory price ranges make a downward adjustment of $ 100-300 was adjusted.
　　 We believe that the prices of Baosteel is expected. In the past two months, steel market prices to decline mainly macro-economic growth continued to slow, sheets of major downstream industries, such as automobiles, household appliances are weak. Especially since the beginning of May, automobile production and sales from the apparent come down, household appliance industry a new stimulus, but to have a pulling effect on demand, at least for some time buffering. Contraction of the industry will allow steel mills in the lower orders, Mills operations are built on the basis of profit, orders, Mills would do something to stimulate businesses to increase the order, but the most common way is to cut prices, Baosteel Group is no exception.
　　 Moreover, since the beginning of this year, raw materials have not been brought to mill larger market pressures. Since April, the imported iron ore prices have been falling slightly, and steel market is highly volatile these cost factors played a large supporting role in steel prices were gradually played down the effect. Weakened cost support, with sales in this price war, Baosteel has a chip, fall in steel prices also have a certain amount of space.
　　 We know that the current contradictions between supply and demand in China is still very grim. Terminal half of production than in previous years, production remains high, especially after April, crude steel production has remained at over 180. In the game of supply and demand in this field, while inventory in the hands of businesses to reduce, but steel stocks are surging. Is to reduce the order, was Gao Qi's inventory, orders by price, this became a mill can take the most harmonious way.
　　 In the steel mill Baosteel Group in China has always been a bellwether role. Bao Steel products price slashed $ 200-300, which reflects the attitude of cautious on the Outlook of Bao Steel, can also be said to be bearish on the Outlook. , Anshan iron and steel plant of WISCO's July order price estimates are lower. If you follow the trend of success, then this is the domestic steel market, will usher in a storm is another price cut. Some may say that in May, data do not show the sharp rebound in exports of steel products in China, does not alleviate the supply and demand of domestic stress?
　　 Right, I can't. You think about it, throughout May, China's steel exports only 5.23 million tonnes, and production capacity in China, at more than 2 million tons of crude steel production capacity, therefore, exports of steel products for the domestic market, and has little effect on May is on the mind of most major businesses are certainly boosted stock market would not have significantly changed. If supply and demand pressures could not be alleviated, then profits prompted by, price reduction storm appears inevitable.
　　 Helped by a price reduction storm in Baosteel, China's steel market prices will usher in the end of building, analysts say, the current domestic steel prices had an intermittent down 2 months, prices of Baosteel or bad message ending for the time being. Recent macro data also shows stimulus also might offer, so this time, market prices are highly likely to usher in the end of stage building, later in the series under the policy of stimulating, steel prices are expected to pick up.



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