According to Voice of This is implicit in August last year, Baosteel cut prices of steel products since the first six months of consecutive increases.
The industry believes that price increases tend to have Baosteel first vane effect. Then he will bring the future will follow the trend of the domestic steel price increases led? Steel-related industries in the new year will usher in patterns of change? CCTV reporter, Professor of Economics at the Central Party School Hanbao Jiang dialogue.
Reporter: Han teacher, Hello! The Bao Steel to raise prices is in line with market expectations? We also note the recent futures prices of steel has continued upward, then in your opinion, the challenges this year, steel prices high in 2009, the possibility of big?
Hanbao Jiang: I think very likely, both now and in the international market from the point of view or from the domestic point of view, inflation pressure, particularly in recent years, prices of imported iron ore in our country, in the negotiations with the supply side of the ore, we always at a disadvantage, it should be said that the price of raw material costs have been rising, from the iron and steel enterprises, how they digest the ore price factors, it should be said that such a large ore prices, based on the whole enterprise is difficult to digest These prices, coupled with international inflation conductivity factors, the impact of import factor and the pressure of our own prices, so Baosteel to make such a price adjustment I would like to be rational in terms of their own, and because of Baosteel leader in the steel industry's position, which I think will lead to higher prices throughout the steel industry price linkage, so I think the trend of steel prices would be difficult to avoid.
Reporter: The price of Baosteel's steel market is often seen as the benchmark, then this means that the leading domestic steel price increases ushered in order to follow suit? The downstream steel industry, such as automobile manufacturing will also be affected if?
Hanbao Jiang: Yes, because the manufacturing of steel products in the most basic products, that is, the first part of the product, steel prices will inevitably bring its downstream product prices, and therefore can be expected within the cost of these price increases can not digest factors based on individual industries will lead to downstream, the downstream part of the price of some products linked to rise, for example, like cars, home appliances, such as these more directly with the steel industry will be affected by these.
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