Supply-side reform marketing trends in Chinese steel market

From what we can tell from steel pipe price and marketing, steel pipe industry production capacity and amount of consumption are tend to be stable or lower, steel related products demand lacks price elasticity, price for steel pipes are flexible. A huge excess capacity and is relatively dispersed, under those factors, supply-side reform is needed in Chinese market.  

Among them, the external factors include the imperfect market competition order, the specific performance of the demand decrease, the lack of effective policies and the lack of enforcement.

Internal factors include excess production capacity , fragmentation of manufacturers and weak indigenous innovation.