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Demand of steel increasing

Although the future of China's steel market there is stillpressure, but from the development trend, the overallsupply and demand began to improve, the cost bottomagain raise prices have reached the bottom.

A modest increase in consumer demand

The first half of this year, the national economic growth rate of 7.6%, of which the one or two quarter economic growth were 7.7% and 7.5%, shrinking by almost 3 percentage points more than in 2010 10.3% growth level,slow more than expected. With external demand situationis not ideal, the lack of investment potential, andconfidence is low, the atmosphere of pessimism, if the lack of effective response, is expected in the futureeconomy will slow further, likely to slip out of a reasonable interval. Therefore, the first half of the economic growth,especially the growth of 7.5% level two quarter, already close tolerance baseline decision-making departments,some important economic indicators, such as industrial added value, consumption, export, was out of the expected the bottom line, and there is a downward trend,must be issued steady growth measures. Although thestate has not announced a massive stimulus plan again,but the local policy adjustment is very likely.

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