In 2010, domestic car production and sales over 17 million, to alleviate the traffic pressure in December last year, Beijing issued "car purchase order", Beijing car sales market suddenly "was" reduced. "We are paying close attention to changes in the automotive industry." Baosteel who revealed to the author. It is understood that Baosteel, Shougang Group, Anshan Iron and steel production and construction of large steel production line with very little, most of the production line for the production of automotive sheet metal and so on. However, car sales suffered a restriction order to increase the steel market risk.
Electrical line Xiaobian that China's current steel production capacity of over 700 million tons, on the one hand if the blind expansion, can only lead to serious overcapacity, but on the one hand, the purchase of popular Hardware & Electrical Market, rigid steel demand is plummeting, steel enterprises have to face rising costs and weak demand situation, the steel market pressures continue to increase the risk.