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According to Mr Shan Shanghua secretary general of China Iron & Steel Association China's steel market features chaotic in products' sales and lack of uniform sales network due to the numerous steel mills and agents, and the condition needs be further rectified.

 

Mr Shan said that "As the most fragmented steel market in the world, China has thousands of steel mills, scattered capacity and hundred of thousand of steel agents. And the large number is increasing market volatility instead of stabilizing it due to their vicious competition in rushing to raising or cutting prices. However, the adverse condition has started to change, with leading mills like Baosteel and Angang having established new steel marketing modes in recent years, and arranging production in tandem with market demand, which is set to raise up their market viability."

 

Mr Shan attributes the recent steel price rise to the stocks pileup by trading houses, which have started restocking amid the warming up market.

 

However, the huge amount of replenishment has distorted market players understanding for real demand, and increased market volatility.

 

Sources: MySteel.net

 

Editor:    Ivy

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