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Construction steel stocks rise, market pressures on resources or show

Due to the recent slowdown in the economy as a whole, external uncertainties affect the entire global market, if the United States the third round of the quantitative easing policy introduced in the short term could push the price of iron ore and other commodities, pushing up domestic steel prices. In the second half, the general level of price stability remains our primary task of macroeconomic regulation and control. The second quarter, although China's GDP growth rate down, but still more than 9%. Meanwhile, high domestic inflation in the downstream steel Shangwang "dilemma" situation. For steel production enterprises, steel prices caused by inflation will face price increases of factors of production the production cost pressures, the production of steel prices and further compressed margins. In this case, only increased steel prices, increased production will be part of the costs to go out, thus compressing the steel trading business and the user's profit margins. High inflation, the state continued to tighten liquidity in the case, part of the steel trade enterprises will face funding constraints, can only reduce the number of store goods or low-cost cash; real estate business is also facing funding constraints, can only be stopped or delayed started. These are the construction steel market will later have a huge impact on supply and demand.

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