The impact of domestic market competition on steel plate sales price can not be ignored. Different steel mills with different structures choose different competition strategies, which determines the market competition situation will be different.
Taking the rebar and hot rolled coil as an example, from the view of the national shopping malls, the rebar market is basically attributed to the thorough competition situation, and no domestic steel factory is in the leading position, as long as some regional leading steel plants, such as Hebei Iron and Steel (000709, stock bar) in Beijing-Tianjin-Hebei region; Shagang in Jiangsu-Zhejiang region; Shaoguan Iron and Steel Group Co., Ltd. and Guangzhou Iron and Steel Co. For Guangdong shopping malls and so on, the steel mill price adjustment is more affects its leading market, other shopping malls pay little attention.

Hot-rolled coil plate is different, because the sale radius of hot-rolled coil plate is relatively large, and the concentration of products is relatively high, steel traders in addition to concern about the price policy of local leading steel mills, the price policy adjustment of large steel mills is more attention. For example, Shagang and Rizhao are mainly sold in the eastern part of China, and they are the leading steelmakers in the region. But steel traders and traders have the same concern for the adjustment of the price policies of Baosteel, Anshan Iron and Steel Company, Wuhan Iron and Steel Company and Hebei Iron and Steel Company, especially Baosteel. Although the circulation of the hot rolled coil market is not large, the adjustment of the price policy will guide other steel mills and shopping malls. The effect is remarkable. But with domestic overcapacity growing, steel companies are running surpluses and even losing money, and the downside of long-distance shipping is emerging. For example, if the hot rolled coil sheets in North China and Northeast China are sold in East China, the transportation cost will be significantly lower. Take Shanghai shopping mall as an example, the transportation cost of steam or railway in North China is 120-200 yuan/ton, the transportation cost of water in Northeast China is 120-150 yuan/ton, and the transportation cost in East China is only about 50 yuan/ton. Under the circumstance of small profit in steel enterprises, the hot rolled coil mill is also shrinking the selling radius. And began to adopt a local-based, COSCO regional supplementary sales strategy, in order to achieve better returns.