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The Exploration of the Steel Price Operation Trends Should Focus on the Structure of Cost and Supply & Demand

The major steel works have held the annual procurement fairs in succession in China near the end of the year, and, a series of policies aimed at customers¡¯ requirements has been introduced publicly or privately.

The author discovered that under the background of the increasing meager profits and even losses in the steel industry, compared to the order policies in the previous years, in order to seize market share in the next year and stabilize and fight for the order quantity of agent and terminal direct supplying clients, all the steel works have held the order policies which are much more preferential and held one after another at the end of this year.

However, it seems to still lack attraction for steel works¡¯ agents who have made a loss for almost a year after a series of preferential policies. According to the feedbacks from the steel trading companies, at the present, all the steel works¡¯ agents adopt a wait-and-see attitude for whether they will be the steel mill¡¯s agents or not, whether they will maintain the order quantity with the steel works. And even some agents have decided to quit the steel works & agency cooperation mode.

Some people in the steel industry stated bluntly that it is facing the huge challenges that the unequal relationship that the steel works plays the dominant roles, the traditional steel works &agency cooperation mode.

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