The recent past, with the weak demand for domestic steel market from the hard, steel prices continued to slump, increasing the pressure of the steel house inventory in order to ensure market share and as soon as possible to empty the inventory, price cuts in steel mills Game indications of an increase; further confirms the market downturn stage of the competition of China's steel industry is dominated by the market turned to steel mills between chess; the operating pressure of the steel trading business has slowed, or resulting in the possibility of habitual weak spot market prices.
This phenomenon can peep evident in mid-July, building materials price adjustment. According to the investigation; East mainstream building materials, sand steel and other steel mill accident delay the price adjustment is full of worries; that is Shagang trend of judgment on the late market into a disagreement rare. Most of the steel trading business, in the case of the waiting sand steel price adjustment to no avail, none other stock at the time to further expand the construction steel market, the average price decline, resulting in the closing of the 11th step onto a high of 30 yuan again, and since June the warm boiled frog "Quotes are very different.
This analysis, said the analyst, sand steel mid-July, the price policy to defer tangle main point should be a significant increase in internal pressure on the stock and greatly reduced external sales contradiction, while periodic earnings losses may be incurred; steel ex-factory price is almost already close to the edge of the cost price; This makes the steel extremely contradictory; at the the Shagang hesitate to price rises at the same time, transit, Wing Steel and other major competitors is also a rare unified holding waiting for attitude, who is not willing to do stands out; this is the very clear steel game between the intensification of the signal.
To July 12, Shagang hesitated to make the hard choices down 70 yuan Budie $ 60, eventually almost succumbed to market demand; and then within a matter of minutes, the other steel mills almost in unison the same magnitude introduction of ex-factory price, under the influence of rare steel trading business, the firm offer is almost anti-City will; but I believe that in the context of the end demand is so bad now, the steel trading business, "anti-city" difficult to effectively; late trend will continue to shock bottoms.
With the reduction of global economic growth, the actual needs of various sectors of the steel significantly reduced; Therefore, the integrity of the Chinese steel industry in the development into the stage of low profitability, but the high pace of development has not been restrained due to falling demand The unexpected emergence of large and medium steel mills contrary, "the loss of investment in Vietnam," a grimace; between the steel and the resulting competition game is a normal phenomenon.
Game in the steel mills, is almost left a breathing space to the downstream steel trade; steel prices and preferential policies to gain market share in the fight; the ultimate beneficiaries of their respective agents; steel plant an agent in this case basically do not have to worry about issues of loss, as long as the sales task is completed, the steel mills in full no loss; even some steel mills also proposed that no matter how the market deteriorated, to ensure that a dealer is not a loss of even a slight profit preferential policies, a series of game in order to reduce the sales pressure.
But I worry that the steel trade market will lose the necessary competition in the steel so "pet"; originally belonged to the market the cruelty of the steel mills pass on; steel market in the future may be slowly lost alone and risks, dependent on the inertia is not conducive to long-term development of the steel industry at the present stage. In the game process in this steel; steel trade are perhaps more active ship, the late steel prices in this operation, the formation of habitual weakness also unknown.
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