Since 2015, the domestic spot steel prices they were unilateral downward state, the average spot price index fell for the steel from January to 2590 yuan / ton, early drop of 8.8% has been accumulated. Many industry sources, narrowing profit environment in the domestic small and medium steel mills shutdowns cases increased significantly, short process manufacturers began large-scale production. January 26 hearing since 2015, it was a unilateral domestic spot steel prices down mode, the average spot price index fell for the steel from January to 2590 yuan / ton in early fall 8.8% has been accumulated. Many industry sources, narrowing profit environment in the domestic small and medium steel mills shutdowns cases increased significantly, short process manufacturers began large-scale production. Tangshan Rui Feng Steel an insider January 26 said, because steel prices continued to fall, had only to maintain profit of steel enterprises increasingly difficult to support the current majority Tangshan mills stop production by increasing access to achieve the purpose, in a controlled part of the range limits the output. Currently, due to the loss rate increased downstream demand remained weak, domestic north, northeast and western regions are a lot of steel prices appear overhaul, limited production of the phenomenon, which is relatively small in some East. Although the focus of enterprises operating rate is still high, but the recent emergence of small steel mills shutdowns have increased significantly, especially in the short process of production companies have begun to shut down a large area in advance of the phenomenon, the country's crude steel production is expected in January compared to December 2014 decreased significantly. January 26 Changjiang Securities research report released also pointed out that since the beginning of "strong steel weak mine" situation superimposed high inventories pressed steel traders shipped early mills still showed a continuous decline in the status of recent earnings, earnings steel surface Since the beginning of the year fell more than 60% to about 38%, which forced mills increased maintenance. However, despite the recent emergence of the North overhaul steel production increased, but at year-end financial constraints and shrinking orders situation, price competition remains fierce among mills, low-cost resources in northern mills in the South is also a direct impact on market trends, short-term steel price stabilized remains difficult. Meanwhile, with the South accelerate the decline in steel prices, steel prices decline slowed in northern, north-south spread has narrowed, "North timber south," the power will be weakened, MERCOSUR supply pressure or slowed.

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