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Four steel mills to cut production by 20 percent this month

        Began its free fall in steel prices is not because the "gold 9 silver 10" of the arrival of slightly improved, "11" before the last week, domestic steel prices dropped more than 5%. September 29, Hebei Iron & Steel, Shougang, Shandong Iron and Steel, Anyang four steel mills have cut production in October came the news of 20%. Analysts believe that the decline in domestic demand, steel prices did not decline reduced, the original fuel prices further pushed up a new wave of a decline in steel prices. Under the pressure of huge losses, "cut and protect the price" has become a lot of steel mills, "life insurance card."

Caused by decreased demand is not strong steel prices

Mysteel analyst Xu Xiangchun, said domestic steel prices before the holiday is still unable to stem the pace of decline, steel prices fell more than 5%.

September 28, the Shanghai market 4.75mm HRC 4,500 yuan / ton, down 320 yuan more than last week; 1.0mm cold-rolled sheet 5830 yuan / ton, down 370 yuan more than last week. Tianjin Market 16-25mm rebar 4,500 yuan / ton, down 300 yuan more than last week; high-speed wire 4200 yuan / ton, down 420 yuan more than last week.

According to Mysteel right next week (September 29, 2008 -2,008 years October 10) varieties of some domestic steel market trends survey, the market generally pessimistic about the market trend after the holiday. The survey, 78% of the respondents believed that the construction of steel fell Festival to see flat accounted for 18%, with only 4% bullish. Hot-rolled coil to the trend, 55% say down to see level accounted for 30%, 15% of the people who call.

Steel prices drag down the original fuel

Insiders said that since early June, due to the cost of high steel prices, steel prices high once consolidation. At present, the situation has reversed. Iron ore, coke and other major raw fuel costs down to promote further decline in steel prices.

This reporter learned that the case showed that last week, the domestic market as a whole Tie Jingfen running low in some areas, Tie Jingfen offer substantial decline in turnover has been no noticeable improvement. Tangshan area Tiejing Fen (66% dry basis tax) price 1050 yuan / ton, down 180 yuan more than last week. 28 imported ore market remained weak, shipping is still poor, inventory remains high, in the current depressed market environment, the iron ore market supply and demand imbalance in the latter part of the trend is not optimistic. 63.5% of the mainstream of India's mineral powder offer 930-960 yuan / ton, down 170 yuan more than last week.

Joint metal mesh tracking data showed last week, Brazil, Western Australia to China shipping fell sharply. Brazil route from 48.79 U.S. dollars / ton down to 26, 37.25 U.S. dollars / ton, down to 23.65%; and Australia route from 16.44 U.S. dollars / ton fell to 11.48 U.S. dollars / ton, down to 42.61%.

Market participants said the domestic coke market remains sluggish run a situation in markets around the Coke deal is not active, prices have continued to Dizou. Although this week is "11" before the last week, but the coke market, turnover, and no significant improvement in steel purchasing is still not active. In addition, the September 25, the South part of the iron and steel enterprises procurement information exchange at the 24th meeting, the participating enterprises think that there should be a substantial post-coke room for downward adjustment. Current ex-factory price coking enterprises in Hebei in the 2400-2500 yuan / ton level, the procurement of basic iron and steel enterprises in Handan to the factory price of 2400-2500 yuan / ton, Tangshan Iron and Steel Company majority of the purchase price set at 2,500 yuan / ton, the lowest price close to 2,000 yuan / ton level. Market transactions, generally light.

Five measures to ensure that "cut and protect the price," bear fruit

For the serious international and domestic market situation and steel business conditions, September 29, Hebei Iron & Steel, Shougang, Jinan Steel, Laiwu Steel, Anyang Iron and Steel and other large steel copolymer, Hebei Handan, Steel City and the current challenges facing businesses an in-depth discussion. Informed sources told this reporter, Handan meeting, several large steel mills said it would take five measures to cope with market changes.

The first is control of production capacity, to maintain balance between supply and demand. It is learned that the above-mentioned enterprises the situation under control in the near future according to their capacity, by about 20% of aggregate; secondly, to further reduce the raw materials of the purchase price, digestion inventory, control of incoming rhythm; third, to strengthen communication between the business executives to ensure that channel flow; fourth, to strengthen its steel mills and dealers sales practices of the constraints; Fifth, the implementation of production quotas in order to sell, timely appropriate adjustment of product structure and resource flows, to avoid the area between the price of disorderly competition.