Since 2009, the world's growing financial crisis, the world economy continued to show declining trend. International Monetary Fund in 2009 to the latest global forecast that the global economy in 2009 will be negative growth. As a result, China's imports and exports have declined substantially, according to customs statistics, 1-February China's foreign trade value of 266.77 billion U.S. dollars, the same period last year (the same below) decreased 27.2%. 155.33 billion U.S. dollars, including exports, dropped 21.1 percent; imports 111.44 billion U.S. dollars, down 34.2%. Import and export of steel products is also a substantial reduction in 1-February export 3.47 million tons of steel, a significant decline 52 percent year-on-year, 1.96 million tons of steel imports, fell 26.8 percent year-on-year. The export of steel products a significant reduction in the domestic market will increase pressure on the supply of resources, constraints of steel prices.

    At the same time, although the domestic macroeconomic environment has improved, but the main consumer of steel industry has low status, in particular, steel accounted for more than 60% of the real estate industry, 1-Feb real estate investment is 239.815 billion yuan, an increase of 1% , of which 168.235 billion yuan for domestic investment, an increase of 0.8% growth respectively over the same period in 2008 decreased 31.9% and 30.1%, the growth rate of the large decrease in the history of a rare, therefore, restricting the current consumption of low steel prices low main reasons.

    1-2 month as a result of crude steel production grew by 2.4% in the same period last year, but a significant decline in steel exports, domestic consumption of basic flat with the same period last year, making the social stocks reaching record highs of steel, as of March 13, the total inventory of steel to meet society 1131 10,000 tons, of which construction reached 5.97 million tons of steel, plate and strip material to reach 5.34 million tons. Stock continually refresh the community a new high price of steel to suppress the formation of a strong, made of steel prices fatigue, shock downlink.