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The Order Policies of the Steel Works are Much More Preferential in the Next Year

Recently, Benxi Steel Group Corporation Wuhan Iron and Steel (Group) Corp., Shagang Group, etc. have held the procurement fairs aimed at customers¡¯ requirements in 2012. It is understood that the annual procurement fairs of various steel works focus on making the communication with the invited old and new clients and confirming the next year¡¯s buying orders.

According to the feedbacks from the steel trading companies attended the procurement fairs mentioned above, the profit margins and the preference which the major steel works gave to the steel trading companies in this year is as much as before, if not more, and the ways of preference are more various, compared to the last year¡¯s order policies. To seize the market share in the next year, there is an obvious fierce competitive relationship among the major steel works.

When we study the change rules of the steel price, we have to pay attention to two parts. One is the cost and another one is the supply & demand mode. Just as the price value mentioned at the economics theory that the value decides the price, the supply & demand relationship influences the price fluctuated around the value. In the analysis of the steel price, the cost decides the value center of the steel price. And the process of dynamic balance of supply & demand mode forms the fluctuation of the steel price.

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