july 12, 27 steel mills across the country released down steel products ex-factory price of magnitude ranging from 10 yuan / ton to 120 yuan / ton, the price continues to cut across the board.where the leading enterprises baosteel the mainstream product prices in august down to 100-500 yuan / ton, this magnitude is beyond the market's expectations.costs accounted for the steel-making more than half of the total cost of iron ore, its price has been in a state that easy to go up rather than down, although the prices have dropped, but as long as crude steel production has not dropped significantly, the demand for iron ore is rigid.however, circumstances exist in the profit margin, the two profits have been squeezed by the steel mills cut production willingness was not apparent.none 27 following the july 12, baosteel and other steel mills cut ex-factory price of steel products, on the 17th, anshan iron and steel and shougang announced prices in august, plate, hot rolled coil and cold-rolled coils and other varieties of pricescut.baosteel is known as the leading iron and steel enterprises in china, and every time it's price adjustment will be the industry that has a wind vane.however, the reality of the market, will not have the enterprise only see baosteel cut prices to follow suit.real so we decided to cut the price of the sluggish market demand, we have to keep our customers.said a private enterprise of the steel mills, general manager of the new financial reporter.according to him, the current market conditions, the difficulty of developing a new customer is far greater than to keep an old customer.the market monitoring data show that in mid-july on steel prices continued lower, after entering the second half, showing heavy volume down the mainstream steel prices decline in july to $ 200 or more.it is not only what a steel mill, and are more severe atrophy of the entire iron and steel enterprises downstream demand, almost all the steel mills this month in the price cut.a large steel mills in shandong.
director of the publicity department of the introduction to the new financial reporter,in his eyes, the market environment this year is worse than last year, are less optimistic about the international and domestic economic environment.hebei iron and steel (2.60,0.00,0.00%) of group market management department director cao hezhong recalled, since steel prices plunged last fall, domestic steel prices in addition to late april early this time in february this year, there have been continued to rebound, the rest are basically down.we only during that time raised the ex-factory prices of some products, and the rest is basically down or maintain the same price.he said last year, prices of good times every month in the raised ex-factory price of the new financial reporter.downstream demand continues to weaken, the steel mills have cut ex-factory price.business manager of wuhan iron and steel group in north china area sales company data prove to the new financial reporter that a downturn in demand,compared to the same period last year, out of a variety of products from our company total average reduction of a quarter, the individual, such as engineeringdemand of downstream industries such as machinery, shipbuilding declined by a third.he expressed some frustration that the market is not to force, only to lower prices in order to keep existing customers.now is not the market expectations, but actually has been very bad, not only lower the minimum.he further introduction, steel mills cut prices is completely determined by the order, such as the agents of a large steel mill, in the case of relatively high steel prices, traders may consider to take less of some goods, the rest from the low pricetake the plant.however, not every family can do the agents of the large steel mills, they still would have been purchased by some, but the amount was reduced.if the agents of the steel mills to do so, that the steel mill shipments will be significantly reduced, in order to avoid such a situation, the steel mills might consider lowered some prices reach a price everyone can accept.in this way, even if it is losing money also must cut prices, because the steel mills in addition to to ensure normal production and continuity, but also to ensure that their orders are not other steel mills snatched. poor demand, the customer is very importantthis is no way to approach.he said.nonenone according to the joint metal mesh statistics, from july 1 to july 17, 62 percent of iron ore from $ 135 / dry ton fell to $ 130 / dry ton, record lows for the year, down 3.70%.iron ore prices have eight consecutive months in the 130-150 u.s. dollars / dry ton range bound.li wei (a pseudonym) the minmetals development (21.75,0.00,0.00 percent) co., ltd. ores staff, he used to do a five-year iron ore trade out quite a bit.to describe the recent wave ore pricefall.he recalls, the dragon boat festival holiday after the market began to see soft, just slightly beginning to go down, and sometimes he'll occasionally rose a little, but the july 1 over the price to drop sharply.li weirapid declineto describe the recent ore prices, and said that the short-term steel plunges ore will cheapening, but he still admitted, ore price decline in intensity is not large compared with the decline in steel prices.the data show that since the first half of 2012, the decline in domestic steel prices are generally more than 500 yuan / ton, however, the decline in the prices of raw materials such as iron ore up and down 100.the current situation isoutside the mine, especially the three major ore prices to go down, but because of their low cost, so there are still room for profit, just not so comfortable before the day facing sales pressure.li wei said
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