Mr Shan Shanghua, secretary general of China Iron & Steel Association, has called for an overhaul of China's steel sales structure.
Mr Shan said that the fragmented nature of the domestic steel industry, a lack of uniformity in products and the presence of numerous mills and agents has led to an increase in market volatility rather than a stabilisation of prices.
However, he also pointed out that "leading mills like Baosteel and Angang have established new steel marketing modes in recent years, and [are] arranging production in tandem with market demand, which is set to raise up their market viability.”
Mr Shan attributes the recent steel price rise to the stocks pileup by trading houses, which have started restocking amid the warming up market. However, the huge amount of replenishment has distorted market players understanding for real demand, and increased market volatility.
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