Strategy taken reason to cut self-help is nothing more than the steel mill in order to deal with their own operating conditions to deteriorate, the market supply pressure is too large, the stock topped difficult under other negative factors, but specifically whether real implementation, implementation process to implement clearhard to say. The biggest risks is that the steel mills for the market outlook between the game and the steel mills of the game.
 
First, because the early steel prices fell too much, in early slight signs of stabilization in the market, even the stage rebound, optimistic attitude merchants even looking forward to the arrival of the September market, the state has adopted a number of favorable policies also stimulated market. Although still more bearish of late but a little relaxing atmosphere might let some manufacturers see hope temporarily adjust production plans also exist.
 
Secondly, the steel mills internal whether to cut, by how much and how less contradictory, and as the market changes are being adjusted in. It is reported that some steel prices securities department said resolutely denied that cut to have said that the production and sales of all normal, lest the outside dialysis and questioned internal situation.
Finally, the steel mills between cooperation, but also a competitor, mutual scrutiny and conjecture inevitable. State-owned or large steel mills hope the funds and resources advantage to small and medium-sized private steel mills deterrence even in the market will be squeezed out, while the latter is more flexibility in production and operation, and throwing off the shackles of institutional occupy its part of the initiative. Whoever cuts may result in the loss of opportunities in the market share positions of both sides can not afford to lose.
 
Thus, cut into a blank check, even if there are some manufacturers perform, but for large industries, but also a drop in the bucket, it is difficult to see the real effect. The current market is not yet to the bottom, although the market situation Forced steel mills to limit production price cuts but the situation does not seem to the worst point, only when the steel mills spontaneous rather than passive cut, probably will see the arrival of the trough, the impact is not only destruction but also rebirth. Not to the most difficult period so late but also the best long-term resistance to prepare.



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