The hottest steel price in China is at a world hig

2022-09-22
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China's steel prices are at the world's highest level "extremely cold"

yesterday, Wu Xichun, a consultant of the China Iron and Steel Industry Association and former Vice Minister of the Ministry of metallurgical industry, said at the Sixth International Symposium on steel market and trade that at present, China's steel market prices have been at the world's highest level. High prices will lead to a rebound in imports, a decline in exports, the accelerated release of excess capacity, and the domestic market from short supply to excess supply The rise of social inventory has increased the possibility of price decline and fluctuation

in the first two months of this year, steel prices soared, causing the export price of industrial products nationwide to rise by 6.6% in February. Wu Xichun judged that the government's macro-control measures will further strengthen the steel industry; At the same time, the price of raw fuels in the steel industry is also rising. Wu Xichun believes that the current sharp rise in steel market prices has exceeded the burden of rising costs caused by the rise in the prices of major raw fuels, and the factors supporting the rise in steel prices have been overdrawn in advance

"if it were not for the reduction of domestic steel production in January and February, and the demand remained strong, there would not be a sharp rise in steel prices in the near future for most of the domestic utilization of high molecular polymers." Wu Xichun said. He said that the main influencing factors of the domestic market price trend after April are still the changes in supply and demand, including the growth rate of output, the changes in import and export volume, and the degree of control of domestic macro-control over the excessive growth of fixed asset investment and foreign trade exports. China is a country with excess steel production capacity, and the degree of capacity release and net exports have a great impact on the domestic market prices and fluctuations

for the current market changes, Wu Xichun said that first of all, the correlation between China's domestic steel product prices and international prices has been very high, and mutual influence cannot be seen; Secondly, due to the demand, the space technology mission command (STMD) of the National Aeronautics and Space Administration (NASA) of the United States has shown great interest in nanotechnology. Due to the growing depreciation of the US dollar, the shortage of energy resources and the rise in prices, the global price of steel products is entering an era of high prices. The demand for energy and mineral resources in developing countries is increasing year by year, but there is a lack of strategic preparation measures, It is difficult to break the control of international monopoly groups, leading to the continuous rise of international mineral product prices; In addition, international capital is surplus, and speculation in futures markets and price indexes such as energy, resource products and sea freight index is prevalent. First of all, we should take the path of resource-saving development, and the price of products has been pushed up again and again

Wu Xichun stressed that the current rise in steel prices is too large, which has exhausted the space for the rise in steel prices caused by the rise in costs. Steel distributors have too high expectations for the price in the later stage of the market, and the increase in inventory has falsely increased market demand. This needs to be paid attention to at all times, so that they are not confused by the illusion, which constitutes a stress shielding effect. He said that the sharp rise in prices will inevitably stimulate the release of production capacity. In 2007, the investment in the national steel industry completed 256.3 billion yuan, with a year-on-year increase of 12.2%. The steel production capacity increased by 50million tons. The industry has completed an average annual investment of more than 230 billion yuan for five consecutive years, with an average annual actual increase of steel output of 60million tons. The supply increment formed by the release of new production capacity is also considerable

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