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This is the first large-scale increase in steel prices in the past six months. The market monitoring of the Lange Steel Information Research Center shows that domestic steel prices have fallen sharply since July and have now fallen by about 40% from the highest point in the year.
A Shanghai-based trader who has long been involved in the steel trade told the China Business News that the current round of steel price recovery started in mid-November, mainly because the price of steel products fell too much, leading to large-scale production cuts by steel companies. At the insured price, traders did not dare to stock up on steel products, causing a phased imbalance in the supply and demand of steel products.
According to statistics, in November, the country’s crude steel production was 35.189 million tons, which was 2% lower than in October and 12.4% more than in the same period of last year. Many domestic steel companies are forced to cut their production costs and market prices upside down and their own inventory pressure. They have taken unprecedented measures to reduce production from October to November, which has led to a steady decline in domestic market resources and rapid decline in market inventories.
Wang Jianhua, director of the Iron and Steel Research Center, believes that steel prices tend to stabilize and even rise, mainly because the function of the “reservoir†of traders is gradually recovering. In the steel products of January and February next year, steel products are only transferred from steel plants to traders. Most are stored in warehouses and are not actually consumed by downstream users.
The above traders said that the current price is only a rebound in the medium term, and now small and medium-sized steel mills have resumed production. If production capacity recovers, domestic steel production capacity is still in excess of demand.
Recently, Shougang, Anshan Iron and Steel, Maanshan Iron and Shagang have successively promulgated the price policy in January 2009. The prices of steel products of different varieties range from RMB 100 to RMB 500 per ton. Baosteel also introduced prices in February 2009. Policies, hot-rolled, color-coated, electro-galvanized, hot-dip galvanized, and some types of cold-drawing board also raised prices ranging from RMB 100 to RMB 450/ton, and only the plate in the plate was lowered by RMB 300/ton. , Container structure steel plate down 100 yuan / ton.