In the 22nd by the Lange Steel Network's "2011 Beijing Autumn in the steel market situation analysis will", industry experts said, although iron ore from rising cost of support, but the main impact of the current market price or the supply of steel, the recent period there have been signs of a slowdown in downstream demand, domestic mills should adjust the variety, control production.

Data show that the end of August, the composite price index of China Iron and Steel Association CSPI steel was 135.23 points, ring rose 0.59 points, an increase of 0.44%, up 17.35 points, an increase of 14.72%.

Director of research at the China Iron and Steel Industry Association, Li Yongjun noted that the factors affecting China's steel prices, the foreign imported cost-push, that iron ore prices is the main factor, followed by improving trading money supply growth, again rising labor costs, as well as demand-pull factors.

"Historically, China's steel price rise cycle typically experience 27-30 months, from May 2009 to now, China's steel prices have experienced a shock rise in 28 months." Li Yongjun said.

If you follow the laws of history point of view, after experiencing a long period of rising prices, China's steel prices have been gradually alternately critical point in the cycle.

Li Yongjun said that if the future of the strict implementation of the new steel standard, and vigorously promote the three rebar, rebar four applications, will decline in steel intensity of each industry, thereby reducing the demand for steel. In addition, the export situation is not optimistic about the future, but also reduces the size of the domestic steel consumption. "This year in July and August, small and medium steel enterprises crude steel output has begun to decline, which also shows that the market began to be reflected in the decline in demand for enterprise production." Li Yongjun bluntly.

Decline in demand was also reflected in rising stock. According to CISA data, into September, steel inventories rise. Second week of September, steel stocks rose to 14.04 million tons, an increase of 1.48 percent over the end of August.

Li Yongjun said that in addition to increasing the supply of foreign, technical progress and labor efficiency also inhibited the rate of increase in prices of steel products. Therefore, when the demand appears weak, the steel industry should adjust the product structure, control continues to grow supply.