The hottest steel price will remain high after the

2022-08-15
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After the steel price increase slows down, the market will remain high.

a report released by the finance and Assets Department of the minimum 3 meeting of China Iron and Steel Industry Association yesterday said that under the dual effect of demand pull and cost rise, it is expected that the steel price in the domestic market will remain slightly volatile and high in the later period

the increase of steel price slowed down in May

in May, due to strong domestic market demand, steel prices continued to rise steadily. At the end of May, the domestic steel composite price index was 156.86 points, up 7.09% month on month and 38.40% year-on-year

according to the report, the reasons for the rise in domestic steel prices include: domestic demand is still strong, mainly in the steel industry; The price of raw and fuel materials continues to rise, driving the price of steel to continue to rise; Steel inventory fell, and the steel market showed a phased tightening of resources

according to statistics, in May, the price of domestic refined iron powder increased by about 30 yuan per ton month on month; Coal prices rose 117 yuan per ton month on month; The price of domestic metallurgical coke rose sharply by 227 yuan/ton, or 10.62%; The CIF price of imported iron ore in May was 136.45 US dollars/ton, up 2.6 US dollars/ton month on month

according to the monitoring data, in May, the total inventory of long materials and plates in 26 domestic markets was declining month on month, of which the screw thread steel and wire rod decreased significantly, and the inventory decreased by 326000 tons and 117000 tons respectively month on month; The steel inventory of large and medium-sized steel enterprises counted by the Steel Association also decreased month on month

the report said that after the strong earthquake in Wenchuan, Sichuan Province, steel enterprises seriously implemented the temporary price intervention measures implemented by the state, and resolutely stabilized the ex factory price of steel to support the disaster areas at the pre disaster level. Affected by this, the steel market price showed a trend of rising and stabilizing in May. Especially since the second half of the month, the increase of steel price has slowed down significantly

at the end of May, the global steel composite price index reached 268 points, up 13 points month on month. Domestic sensors are relatively cheap 1%, up 55.5% year-on-year. At the end of May, the international and domestic steel composite price index difference reached 111.1 points, an increase of 20.6 points over the previous month; Among them, the index difference of plate and long timber increased by 20.6 points and 20.3 points respectively over the previous month

The report believes that the demand sends a sinusoidal signal to drive the dynamic load components to exert cyclic stress on the samples. Although the global economic growth slows down, it is better than expected; The steel demand in emerging economies such as Brazil and India is still strong, which will support the high price operation of steel in the international market. After the Wenchuan earthquake, the fundamentals of China's economic growth have not changed, which will drive the demand for steel to maintain growth and dispatch the enthusiasm, initiative and creativity of the officers at all levels to start businesses

at the same time, the rising price of raw and fuel materials has brought the steel industry into a period of high cost. "Under the dual effects of demand pull and cost rise, it is expected that the steel price in the domestic market will remain slightly fluctuating and high in the later period."

According to the report, in addition to the impact of supply and demand, the rise in steel prices this year is mainly driven by high costs. According to the statistics of the Steel Association, the rise in the price of raw and fuel materials has driven the average manufacturing cost of steel-making pig iron in large and medium-sized steel enterprises to rise by 51.7% year-on-year, and the unit manufacturing cost of steel products such as rebar and wire rod has increased by more than 50%

the report suggests that the steel price has increased month by month in the first five months. At present, the price has entered the high-level adjustment range. We must pay close attention to the changes in the market supply-demand relationship to maintain the stable operation of steel prices. At the same time, in order to ensure the smooth progress of post earthquake reconstruction, steel enterprises should take the overall situation into account and maintain a reasonable price

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