The reporter learned from the Beijing steel market yesterday that many types of construction steel prices continued to rise slightly, among which, the price of the φ10 HRB335 rebar rose by RMB 30 per ton, and the offer price was RMB 4,740 per ton. Many analysts have also made considerable differences in the future trend of the steel market. Of course, the related disputes did not change the fact that the domestic spot iron ore prices once again entered the high price, which will bring considerable pressure on domestic steel prices Steel prices: will still rise in the near future, "up" sound and optimism Emotion has been filled with domestic steel market. For example, the commercial forecast issued by the Department of Market Operation Regulation of the Ministry of Commerce recently showed that domestic steel prices rose by 3% from the previous week.
“I saw the price adjustment information of the relevant steel mills. Therefore, I am still a bit worried about the future trend of steel prices.†Yesterday, a small steel trader told the “International Financial News†reporter.
In response, analysts told the “International Financial News†reporter that the upward momentum of the current round of steel market did not subside and there was still room for growth. “From the macro level, although the central bank announced raising the deposit reserve ratio, it will not Fundamentally changing the domestic liquidity easing situation, and the international currency environment maintaining a loose trend due to spamming of currencies in countries such as the United States and Japan, will bring financial support to the domestic steel market. The effectiveness of emission reductions has gradually eased, and domestic crude steel supply has maintained a negative growth for several consecutive months, and the social inventories of major varieties have also continued to decline. At the same time, the firmness in the production of raw fuel prices has made the rigid support for manufacturing costs apparent."
Lang Lang, an analyst at Lange Steel Network, pointed out that domestic steel prices may decline slightly in the future, but it is unlikely to drop sharply. He gave the opposite opinion to the reporter of "International Finance News". "At the demand level, it is an indisputable fact that the market is in an off-season; on the supply side, the sound of energy conservation and emission reduction is weakening, so crude steel production will gradually recover, and the market will gradually Again, there is supply pressure."
According to the business forecast, “As construction steel products and other varieties enter the off-season demand, dealers and end-users’ willingness to purchase will decrease, and it is expected that the steel prices may stabilize at the later period.â€
Ore price: It is worth noting that the CSC is still reporting that the “steel iron ore price continues to rise†has also been listed as one of the major issues that the market needs to observe. In the eyes of people in the industry, the China Steel Association is not surprised that this is because in the case of liquidity in the market, the recent rise in the price of dollar-denominated commodity prices, China's imported iron ore prices have been relatively low from July The point has risen again to a very high price. The data shows that the current market "wind vane" 63.5% grade Indian powder ore price than July this year, higher than 40 US dollars per ton. This, while supporting domestic steel prices, will undoubtedly bring cost pressures to domestic steel companies.
Zhang Lin, an analyst at Lange Steel Network, warned that “it is necessary to beware of the future price of imported iron ore to climb up in the trend of international commodity prices, and to surpass the price level before the financial crisis.â€
Zhang Lin also reminded that in the future, the risk of iron ore price increases will further increase the cost burden on already low profit margin steel production enterprises. “Next, the steel industry chain may have such a scene: the sharp rise in international iron ore prices. The cost of China's iron and steel companies has risen. Major steel mills have successively raised the prices of various types of steel products. As a result, the cost of downstream construction steel, building materials, automobiles, shipbuilding, machinery manufacturing and other industries has risen. Due to differences in the cost transmission capacity, different companies have different costs. The degree of profit decline."
Profitability: No loss. On the one hand is the steel price which is not faded in the off-season. On the other is the continuously high iron ore price, which has caused the industry to worry again about the overall profitability of domestic steel companies. In particular, as early as a few years ago, there was a voice saying that "the domestic steel companies may once again fall into the industry-wide losses."
In this regard, Li Xin believes that domestic steel prices will not suffer losses under the backdrop of “steel prices are unlikely to fall sharplyâ€. "Actually, compared with the lowest steel prices in recent years at the end of August last year, the overall price of domestic steel prices this year is relatively normal." Li Wei said, therefore, do not worry that the profitability of domestic steel enterprises this year is lower than last year.
At the China Steel Association’s industry information conference, Luo Bingsheng, deputy president of the China Iron and Steel Association, has stated that in the first three quarters of this year, 77 large and medium-sized iron and steel enterprises that were included in the statistics of the China Iron and Steel Association had a profit of 640 billion yuan, which was a year-on-year increase. 9805%, total corporate profits increased.
However, industry insiders also pointed out that the decline in the profitability of the main steel enterprises is an indisputable fact, which has also led many steel companies to start developing their own "sideline businesses." It is reported that domestic steel companies such as Baosteel, Shougang, and Nangang are all developing upstream and downstream industries related to the steel industry.
“I saw the price adjustment information of the relevant steel mills. Therefore, I am still a bit worried about the future trend of steel prices.†Yesterday, a small steel trader told the “International Financial News†reporter.
In response, analysts told the “International Financial News†reporter that the upward momentum of the current round of steel market did not subside and there was still room for growth. “From the macro level, although the central bank announced raising the deposit reserve ratio, it will not Fundamentally changing the domestic liquidity easing situation, and the international currency environment maintaining a loose trend due to spamming of currencies in countries such as the United States and Japan, will bring financial support to the domestic steel market. The effectiveness of emission reductions has gradually eased, and domestic crude steel supply has maintained a negative growth for several consecutive months, and the social inventories of major varieties have also continued to decline. At the same time, the firmness in the production of raw fuel prices has made the rigid support for manufacturing costs apparent."
Lang Lang, an analyst at Lange Steel Network, pointed out that domestic steel prices may decline slightly in the future, but it is unlikely to drop sharply. He gave the opposite opinion to the reporter of "International Finance News". "At the demand level, it is an indisputable fact that the market is in an off-season; on the supply side, the sound of energy conservation and emission reduction is weakening, so crude steel production will gradually recover, and the market will gradually Again, there is supply pressure."
According to the business forecast, “As construction steel products and other varieties enter the off-season demand, dealers and end-users’ willingness to purchase will decrease, and it is expected that the steel prices may stabilize at the later period.â€
Ore price: It is worth noting that the CSC is still reporting that the “steel iron ore price continues to rise†has also been listed as one of the major issues that the market needs to observe. In the eyes of people in the industry, the China Steel Association is not surprised that this is because in the case of liquidity in the market, the recent rise in the price of dollar-denominated commodity prices, China's imported iron ore prices have been relatively low from July The point has risen again to a very high price. The data shows that the current market "wind vane" 63.5% grade Indian powder ore price than July this year, higher than 40 US dollars per ton. This, while supporting domestic steel prices, will undoubtedly bring cost pressures to domestic steel companies.
Zhang Lin, an analyst at Lange Steel Network, warned that “it is necessary to beware of the future price of imported iron ore to climb up in the trend of international commodity prices, and to surpass the price level before the financial crisis.â€
Zhang Lin also reminded that in the future, the risk of iron ore price increases will further increase the cost burden on already low profit margin steel production enterprises. “Next, the steel industry chain may have such a scene: the sharp rise in international iron ore prices. The cost of China's iron and steel companies has risen. Major steel mills have successively raised the prices of various types of steel products. As a result, the cost of downstream construction steel, building materials, automobiles, shipbuilding, machinery manufacturing and other industries has risen. Due to differences in the cost transmission capacity, different companies have different costs. The degree of profit decline."
Profitability: No loss. On the one hand is the steel price which is not faded in the off-season. On the other is the continuously high iron ore price, which has caused the industry to worry again about the overall profitability of domestic steel companies. In particular, as early as a few years ago, there was a voice saying that "the domestic steel companies may once again fall into the industry-wide losses."
In this regard, Li Xin believes that domestic steel prices will not suffer losses under the backdrop of “steel prices are unlikely to fall sharplyâ€. "Actually, compared with the lowest steel prices in recent years at the end of August last year, the overall price of domestic steel prices this year is relatively normal." Li Wei said, therefore, do not worry that the profitability of domestic steel enterprises this year is lower than last year.
At the China Steel Association’s industry information conference, Luo Bingsheng, deputy president of the China Iron and Steel Association, has stated that in the first three quarters of this year, 77 large and medium-sized iron and steel enterprises that were included in the statistics of the China Iron and Steel Association had a profit of 640 billion yuan, which was a year-on-year increase. 9805%, total corporate profits increased.
However, industry insiders also pointed out that the decline in the profitability of the main steel enterprises is an indisputable fact, which has also led many steel companies to start developing their own "sideline businesses." It is reported that domestic steel companies such as Baosteel, Shougang, and Nangang are all developing upstream and downstream industries related to the steel industry.