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"Rising raw material prices will inevitably drive up the price of steel, and the industries most affected by the rise in iron ore and steel prices are the shipbuilding industry, machinery industry, automobiles and home appliances industry." The recent market statistics of the United Metals Network believe that the domestic steel market in June It will maintain a high consolidation. According to report, due to the sharp decline in profits of iron and steel companies over the same period of last year, coupled with the 19% increase in iron ore nearly 10 times higher than previously expected to be optimistic, so the recent domestic steel mills raised the enthusiasm of the steel factory price Extremely high, which may lead to upward adjustment of prices in related industries.
Yesterday, a steel dealer in Shanghai told reporters that after the iron ore negotiations entered the stalemate phase, domestic steel companies led by Baosteel have significantly increased their ex-factory prices. “Sometimes, one day's rise will reach 100-200 yuan/ton. The market is often upside down." But he also said that at present it is not possible to judge the arrogance of steel prices this year based on the 19% rise in iron ore.
"Actually, the 19% increase may have a psychological impact on Chinese iron and steel companies that is greater than the actual impact." In an interview with reporters, Xi Gang, president of Shanghai Xiben Iron and Steel Co., said in an interview that since the steel industry is a capital-intensive industry, it is vulnerable to news, and news first hit the industry mentality. "So for the steel supplier, adjusting the mentality is the most important thing."
The analysis of Handan Iron and Steel Company, the current full-process steelmaking enterprises, is still in a state of high profitability, and the profitability of some blast furnace and converter combined steelmaking companies should be around 30%. Therefore, corresponding to the 19% increase in iron ore, the impact on finished product prices is less than 5%, plus the current trend of RMB appreciation, seasonal changes in international ocean freight, the devaluation trend of Brazil, Australia, and the US dollar. From a point of view, the cost pressure brought by the price increase of iron ore is basically the industry can bear.
“However, the state has stepped up its macroeconomic control over the steel industry, coupled with a relatively positive attitude of the state not encouraging the export of steel products. The prospects for the steel industry are also not optimistic.†According to the analysis of Handan Iron and Steel, the current situation Look, there should be no reason why the steel price should rise excessively this year. Last year, the domino effect of the 71.5% rise in iron ore prices hit many related industries. In the first time when the price of iron ore rose, the stock prices of Baosteel and Shougang fell first, and the entire Shanghai stock market fell below 1300 points. The Chinese manufacturing industry, which is heavily dependent on iron ore as its raw material material, sighed. "However, this year's 19% increase did not actually exceed the industry's expectations. The industry is already prepared for this. The current rise in steel prices has already driven up the prices of building materials, home appliances and other industries." Yesterday a steel industry securities analysis After determining that this year's rise in iron ore by 19%, the division predicts that there will be slight fluctuations in the relevant share price, but it will not drop substantially.