Thu. Jun 30th, 2022

Do not know the rules of the game of iron ore supply and price game, and do not spend time and energy to study these rules of the game, waiting for China’s steel enterprises will only be damaged interests. Bright seamless steel pipe price production fell continuously, which is the performance of steel mills to save energy and reduce production, but the current steel market industry is still in the doldrums, the downstream industrial steel demand still can not keep up with the supply and demand contradictions topic still exists.

The current fundamental situation of the steel industry is still not optimistic. Market through a period of express pull up, the volume of transactions with a more limited, making the price pull up sluggish, yesterday the department of the city building materials prices tend to slow down, but iron ore prices continue to rise, the support of steel prices is stronger, short-term steel prices into a high probability of shock.

In accordance with the tone of the central economic work conference, will inherit the implementation of prudent monetary policy, to properly expand the scale of social financing, to maintain a moderate increase in loans. The country’s policy in 2012 proposed to inherit the implementation of proactive fiscal policy and prudent monetary policy, and actively and steadily promote urbanization and other work objectives, meaning that 2013 will continue to increase investment in infrastructure, real estate and other project areas, which will undoubtedly pull up the market demand for bright seamless steel pipe prices in 2013.

In response to the rising cost of raw materials, steel mills can only continue to raise the factory price to reverse the loss situation. As of the 8th, Jinan steel market on the three rebar Jigang offer 3870 yuan / ton, up 270 yuan / ton than last month; Laigang Yongfeng reported 3780 yuan / ton, up 210 yuan / ton than last month. But industry insiders generally thought that this may be the final interpretation of the mine price madness, followed by its lack of sustained upward momentum.

Moreover, to see through the iron ore and other resource commodities unique absolute “scarcity” attributes. Cash flow imbalance between supply and demand, giving rise to the credit crisis. In the first half of the year, the contradiction between supply and demand in the domestic steel market, bright seamless steel pipe prices smooth flow of industry cash flow imbalance, testing the ability of steel trading enterprises to operate, profitability and solvency.

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