Latest information，steel prices have risen sharply this year.the main reasons are the rising price of raw materials and the strong demand in the domestic steel market.
1. Rising raw materials prices
China's iron ore mainly comes from imports. Australia and Brazil are the two major importers of China's iron ore. among them, China's iron ore imported from Australia accounts for the highest proportion every year, which can reach 67%. Therefore, the fluctuation of Australian iron ore price has the greatest impact on China's steel market.
According to the news on February 22, 2021, the price of Australian iron ore has soared to US $170.95/t, catching up with the historical high of US $176.20/t created in December last year.
The rise of iron ore price will inevitably lead to the rise of steel smelting cost, and steel enterprises will inevitably transfer the rising smelting cost to steel processing enterprises, and steel processing enterprises will also transfer the rising purchase cost to steel sales market.
2. Steel market demand is strong
Since 2021, the demand for steel in the real estate industry has been relatively stable. Generally speaking, as long as the demand for steel in the real estate industry is relatively stable, the market price of steel will be relatively stable.
Under the condition that the steel market price is relatively stable, the manufacturing boom index this year is relatively high, which leads to the rise of steel demand. With the rising demand for steel, the steel market has become a seller's market, and the selling price of steel has the final say of iron and steel enterprises.
According to the data monitored by the iron and Steel Association, as of April 8, the national inventory of the five major steel varieties was only 18.84 million tons, and it has decreased for five consecutive weeks. It can be seen that although the price of steel is rising, the market demand for steel is also rising.
Extended data
Soaring steel prices:
According to the data recently released by the National Bureau of statistics, in early April 2021, compared with late March, the prices of 27 of the 50 important means of production in the national circulation field increased significantly, among which the increase of steel was the most prominent.
With the straight-line rise of steel prices, to some extent, it has had a certain impact on our export trade. Our main products, electric power tower, telecommunication tower and substation structure,are made of angle steel, so the price also rises with the wave, but xytower insist on providing the most reasonable price and the best service to customers.
Post time: Oct-22-2021
