Shagang Group, a leading steel steel mill, published the new price policies during the holiday. The price of deformed steel bar keeps stable. If it achieves the plant amount of January, the price of it in February and March will rise by 200 RMB/t. When the news spread, the response of the market is very different. People have different views of the after-market, and prices were mixed.
Price inversion is the diver of the hike-price, but it is not the main cause. The new published price policy reveals the problem of over capacity.
Currently, the capital of the downstream market is very tight. And the over capacity makes the market more worse. Therefore, it estimates that the price of domestic steel shows a falling trend.
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