TISCO to cancel some of the varieties of subsidy policy, some dealers complain incessantly, but has been aggressive price companies are trying to stabilize the price of steel is a move in addition to the more entangled I let tangle of market, meaning how? On the marketimpact and how? the stainless steel industry chain development will be how?
Of traders, steel mills, the elimination of subsidies and its essence is to pass on the risk to the traders and distributors to expand inventory, occupied its capital at the expense of. TISCO removal of subsidies on the one hand means that the need to change their own business model (before is Kuaijinkuaichu of cheap shipping, price stabilization, the mode of operation, how will); the other hand, means that stock traders to reduce The increase in free cash, have more independent room for maneuver.
Steel mills, times have changed, then nothing is easy. Subsidy was originally a steel digestion inventory to speed up the resources to digest and effective means to improve liquidity in the current growing in loss to do thanks to the many cases, and the yield has been relatively controlled, subsidy policies and the status quo is the phase of disobedience, removal of subsidies is inevitable.
View from the future development of the entire stainless steel market, steel removal of subsidies is an important signal for the transition to a market economy, from trade subsidies / protection. After the abolition of the subsidy policy, stainless steel spot prices closer to market, to better reflect the changes in market supply and demand, the stainless steel market development towards a more rational and healthy direction.
The long term, in line with the law of market economy development, but also conducive to the development of the stainless steel industry chain.
Of course, the policy of elimination of subsidies only TISCO in the current situation, weigh the various aspects of the choice made to adapt to changes in the market the product in the short term. With the stainless steel market developments and changes in subsidy policy is once again restored unknown.
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