Baosteel continuous three-month price reduction
August 10, Baosteel announced the September futures price policy, which cut by 100 yuan / ton for hot rolled products, Baosteel continuous cut sheet ex-factory price in March, but the have dropped over the last distinctly narrowed. In July and August, Baosteel has substantially lowered the price of cold-rolled, hot-rolled products, two types of cumulative decrease of 400 yuan / ton.
 
The Baosteel known as the steel industry price benchmark. The industry generally believe that Baosteel hot rolled coil prices, or to drive a new wave of steel price surges, market focus may be further down. Coupled with this is the the Baosteel third consecutive month, down ex-factory price, which will undoubtedly bring a new blow to market confidence.
 
Throughout the steel supply chain, the core is that traders have no confidence in the market outlook, the market is very pessimistic. "Lange Information Consultation Co., Ltd., director of product operations, said Lu Fu Zhen" social inventory statistics, a lot of warehouse steel plant designated warehouse, so is the social stock of high circulation of resources on the actual market is relatively limited, but high inventory of steel. "
 
According to the China Steel Association, in late July, steel inventory of the key steel enterprises was 12.32 million tons, down 1.04 percent from mid-July, the steel stocks are still at a high level no major changes.
 
The analysts believe that a Baosteel price adjustment be considered within expectations, "The main reason is that each downstream industry needs not steel orders, contracts organization was not good enough."
Lu Fu Zhen had expected Baosteel September sales price will not change, because September is the traditional peak season. Further fall in Baosteel September, reflecting its outlook is not very good, to the extent that demand is very bad of Lu Fu Zhen said before "Baosteel's price adjustment is in order to grab market share and price cuts in August, while the prices have been 'playing' to the profit and loss point of the steel mills, steel mills unable to support that prompted the overhaul cuts, and a chain reaction to continue to cut prices in September, in addition to continue to take the initiative to protect the market, the market is expected to well performance. "



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