Due to the high CPI index in China, stabilizing prices has become the top priority of China's economic work. Under the influence of this environment, the production cost of enterprises has risen sharply, but the sales price of products has risen relatively little, which has squeezed the sales profit of enterprises. With the macro-control, the CPI index declined, and the iron ore price began to decline, but the peak position of product sales price was basically determined, and there was also a downward trend. Since the third quarter, domestic and foreign steel prices have fallen sharply from the peak, and domestic steel prices such as rebar have fallen by 37%, which has also increased the sales risk of enterprises. Risks are divided into: the decline in sales price or the difficulty in selling finished products will directly affect the sales profit of enterprises.

Moreover, because China iron and steel enterprises are increasingly dependent on imported iron ore, the price of iron ore is rigid. This also shows from the side that the iron ore import pricing power is not in the hands of China iron and steel enterprises, which leads to the inability of iron and steel enterprises to control costs and lock in profits.