Expert Analysis: Why so fierce rising steel prices? – Steel prices, steel prices – steel industry
As more and more hot summer, heat the way steel prices. In the first 5 months, steel prices rose by 30%, in May of steel prices is up nearly 40%! Steel is one of the most important basis for building materials, steel prices rose indeed affect the whole body. Construction machinery, shipbuilding, automobiles, home appliances and many other industries are all affected by these downstream industries up considerable pressure on steel prices.
steel prices rising for?? Market demand, "lit", raw material prices, "pouring oil"
"This round of steel price rise was actually more fierce." Deputy general manager Wang Yongsheng Shandong Taishan Iron and Steel Group said. This year in May, the Thai production of hot rolled wide strip steel prices for 5800? 5900 yuan / ton, while last year the price was only 4200? 4300 yuan / ton, up nearly 38% year on year; Thai Cold Rolled Steel Production broadband, 5 also the month prices rose nearly 35%. Thai steel sales department official told reporters, constantly adjusting prices, has become a major event in the first half of Thai steel. Shanghai, Tianjin, Guangzhou, Chongqing and other major domestic steel market, the hot and cold coils appear on the market prices up 100 yuan / ton in the case.
"This round of steel price increases, the direct cause is the sharp price increases of raw materials." Jinan Iron and Steel Group Corporation, the new deputy general manager Zhang said.
18 February this year, the Brazilian mining company Vale announced one after another with Nippon Steel, Posco and ThyssenKrupp Boda Cheng's 2008 international benchmark price of iron ore: iron ore per ton in southern Brazil FOB increase from last year's 46.87 U.S. dollars to 77.37 U.S. dollars, while high-grade ore from 49.12 U.S. dollars Caracas up to 83.99 U.S. dollars, or 65%, 71%. Current Iron ore prices Is already the sixth time since 2003, or close to record high, second only to rise 71.5% in 2005.
Steel mills in China, international Iron ore price The slight change will touch their sensitive nerve. According to the China Iron and Steel Association data, in 2007, China imported iron ore, 383 million tons steel plant, accounting for more than half of the required iron ore. The international iron ore prices rose so high, all the major steel mills had to summon up the full response, while the prices of the situation as inevitable.
While prices of raw materials led directly to higher steel prices, but the market demand "within the Fire" is the fundamental reason for steel prices. Chang-sun, said that at present, the international and domestic market demand for steel is very strong, resulting in a rising steel prices despite gains, the market is still the underpinning, worry about the buyer. "Pure driving steel prices will of course increase the cost, but it will only work in a certain period of time, and can not reach the current level." Chief analyst at CITIC Securities steel industry also held the same week by the Greek point of view. He noted that China's industrialization and urbanization in the ascendant, will only increase the demand for steel will not be reduced, which leads to high steel prices to run.
Fact, intermediate goods as iron and steel industry, in recent years the growth has long been overtaken by the downstream industries. Downstream of the real estate, machinery manufacturing and automotive industries, the growth rate last year, about 20%? 30% growth over the same period only 18% of steel, in January this year, even as low as 7%. Clearly, the market for steel is very much needed. Laiwu Iron and Steel Group senior economist Zhang Jinong that the current shortage of steel in the "lit" the situation, and iron ore, coke and other raw materials prices sharply, just played a "pouring oil" effect, to enlarge the original up should occur price effects, which makes the performance of steel prices rose more prominent.
interest related?? Grad Steel prices, so that the major raw materials by steel companies feel the pressure. "High steel prices, is simply our aircraft on fire." Laiwu, general manager of global auto parts Liu Hanzhi anxiety that "we have prices, but we are facing the consumer, too many people up not buy, and this pressure can be compared? "
True downstream steel enterprises are mostly sold to consumers, greater elasticity of demand due to product market, these companies and can not easily raise prices substantially. The face of the double steel mills and the market pressure, the downstream firms often face "up or not up" embarrassing. Linyi Huasheng Zhongtian Wang Xingxin chief accountant of the company that the current market demand is also relatively strong since, a time do not, through higher prices will affect sales, but sales of high prices will bring potential business risks, once the market able to survive , nothing will escape the enterprise.
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