Puzzles in the domestic steel market pricing weaker Baosteel price indicators - Steel, Steel - Pump Industry

Puzzles in the domestic steel market pricing weaker Baosteel price indicators - Steel

, Steel - Pump Industry

HC Valve Network: 1 "steel wind vane", a Chinese iron ore negotiators, one person playing two roles, the mixture as a whole, so that Baosteel raised the price every time, almost have to put the public's moral judgments.

Baosteel price, not a panacea, the compass often mistakes. In particular the steel market is already changing, increasingly challenging the price of Baosteel. Such as Baosteel raised in February in excellent line 200-300 yuan / ton occasion, the domestic market significantly down, according to the Ministry of Commerce business forecast monitoring, Jan. 17 week, the National Construction steel prices decreased by 0.2% over the previous week, which 25mm rebar, 6.5mm high-speed wire rod drop of 1% and 0.8%.

One, weakening the role of Baosteel prices pointer

China Steel Profound changes in the industrial environment. The formation of the industry over the years of high investment rates, and accumulated a lot of capacity, capacity grew faster than market demand; the other hand, reflects the increasing scarcity of resources, iron ore, coal market is gradually strong, leading to frequent market fluctuations. Before a stable steel market environment has been destroyed, leading steel market pricing challenge.

Steel industry competition, the major steel product mix upgrade, Baosteel as the industry guide features more weakened. In particular the flow of speculative steel increased, the stability of poor circulation chain, Baosteel price adjustment, as the domestic steel prices skyrocketing booster, leading to an imbalance of market prices, from the market demand, steel prices induced by the steep decline of the market price of serious inverted ( market Sell Price is lower than ex-factory price).

Example, in August 2009 of the mutations that steel prices down. Before steel prices down, Baosteel raised steel product prices in August, down steel prices after Baosteel also raised prices in September, prices fall in an attempt to reverse the passive situation, but the market continued lower steel prices, the domestic market generally inverted phenomenon.

II, Baosteel three challenges facing the pricing mechanism

First, the market share decreases, the price leadership model based have changed. Over the years, the domestic steel pricing mechanism commonly used is the lead steel pricing, and the remaining steel to follow strategy that is economics, "price leadership model."

Price leadership model for oligopolistic market, the key point is to have a monopoly control over a large steel mill. But the steel market competition, the steel industry is the competitive market direction. Excess capacity, each of which yields were increased substantially, the competition of foreign steel products, iron and steel industry that has a monopoly, competition is getting higher and there may even be a large area of corporate losses.

More importantly, Baoshan Iron and Steel production in the domestic proportion has decreased year by year. Despite efforts to expand production at Baosteel, the Chinese steel industry production grew even faster. After 2000, the national steel output 20% to maintain long-term annual growth rate.

2001, the Steel crude steel output of less than 20 million tons, accounting for 12% of crude steel production for one out. By 2008, crude steel production of 35.4 million tons Baosteel, leaped from the third world steel prices, but the proportion of national output dropped to 7%.

If the rise of other major steel mills into account the national impact of Baosteel decline will be greater. Hebei Iron and Steel, Shandong Iron and Steel and other local corps turned out to Baoshan Iron and Steel production advantage is weakening. Wuhan Steel, Anshan Iron and Steel, Shougang, TISCO and other steel mills in the technology upgrade, Car , Home Appliances Variety of steel production line put into operation, the technological advantages of Baosteel also be challenged.

Second, Baosteel stock market is small, the market impact of weakening. Baosteel Group and downstream enterprises to sign long-term supply agreements, products and more direct supply vendor, spot market supply is greatly reduced, the influence of the domestic market dropped significantly. Its better than steel Sand Steel Group in the construction area of influence. Baosteel and beauty, household electrical appliance enterprises such as signing strategy Galanz Cooperation Agreement, and SAIC, Dongfeng Motor, China Commercial Aircraft Company partnership, shipping products directly to users.

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