Recently, MIIT ( Ministry of Industry and Information Technology of the People's Republic of China) release an official decree to all the steel factories and local government concerning the limitation of steel productive capacity. The output of steel will be shrinked by 10% - 20% in the coming days. Now, the chief large-size and medium-size steel factories in China already start adjusting their production lines and reduce the output. A responsible person in Baosteel Group disclosed that their reduction extent will be 20% at least, one hot rolling production line and four blast furnace already stop running now.
With the reduction of steel supply in the following days, the steel price will go up steadily. In fact, the steel price already begin climbing up in domestic market now. An unofficial news said that the principal steel factories decided to raise their price by different level before long.
Influenced by the steel price, many industrial product will face the cost growing, and the sales price will increase accordingly. It is better for customers to stock up relative industrial product right now before the forthcoming price rise.
