The factors to be considered in iron and steel price negotiation are supply and demand, macro policy, international market, inventory, price adjustment of steel mills, cost and futures. According to the investigation of iron and steel pricing mechanism, there are many factors that affect iron and steel price negotiation. The relationship between supply and demand is one of the main factors that determine the price of steel. In addition, macro policies, import and export prices in the international market, market inventory, quarterly price adjustment of steel mills, raw material costs, and electronic futures trading all affect steel prices.