The China Economic Times reporter learned recently that several small and medium sized steel mills that have announced production stoppages or production cuts have started to resume production. Some large and medium-sized enterprises have also resumed the production of some production lines. At the same time, manufacturers including Baosteel, Anshan Iron and Steel and other large steel companies have also raised their ex-factory prices by a few days, ranging from RMB 20 to RMB 350/t.
According to the latest statistics from Union Metals, since mid-July this year, the upward adjustment has become the main tone in a series of new price adjustment policies issued by steel mills. Among them, Anshan Iron and Steel in January next year, hot rolled, low carbon and ship price base will be increased by 350 yuan / ton. Shougang HRC is increased 300 yuan / ton. Maanshan Iron and Steel will raise the prices of various varieties in the second half of this month, ranging from RMB 50 to RMB 200/ton. In addition, according to market feedback, Baosteel's ex-factory prices will also be adjusted upwards in February next year.
A boss of Liuzhou, Hebei, who has been in the trade of steel products for many years, told reporters that “the market has obviously felt warmer in the recent period, and some steel prices from the manufacturers have risen and some of our sales have gone up.â€
The domestic steel consulting agency recently issued a report that, as of December 19, the total inventory of iron ore at 19 ports in China’s coastal areas was 59.99 million tons (not including yards outside the port), which was 74 million tons a month ago. 14 million tons, a decrease of 19%. At the same time, port spot iron ore prices have risen in stages. The statistics of joint metal nets have similar situations.
The data released by the Ministry of Commerce also showed that during the week from December 15 to 21, the average price of iron ore in the country rose by 2.3% compared with the previous week. The price of iron ore in the main producing areas of Hebei Tangshan and Liaoning Anshan were respectively It rose by 4.8% and 4.6%.
It is understood that after a sharp decline in the previous period, starting from the beginning of November, spot iron ore prices in India began to rise, 63.5% of ore fines have risen from 67 US dollars / ton to 80 US dollars / ton (dry basis Tax), up 20%. Domestic spot mine prices have also risen correspondingly, and the ex-factory price of Tangshan 66% iron powder dry basis has increased from 635 yuan/ton at the beginning of last month to 722 yuan/ton, up 14%. At the same time, the international shipping market rebounded slightly after reaching the trough, and the Baltic Freight Index (BDI) rose by 20% in the past 10 days.
Some experts said that the resumption of production by steel companies and the price increase of steel products are mainly due to the current increase in infrastructure construction, construction of large-scale railways and large-scale projects, and an increase in the demand for steel products.
However, Union Metals analyst Hu Yanping believes that the recent steel market is still subject to the macroeconomic background, and the recent upward momentum in the market is not strong. According to the recently released macro data, downstream demand and exports have all experienced a significant decline. At the end of the year, the steel market still faces downside risks.
“It is difficult to improve the financial status of steel enterprises, especially large-scale steel enterprises, due to price increases of steel products. At present, the price of iron ore is also increasing.†A middle-class source of the strategic investment department of the new cast pipe group told reporters that the operation of steel enterprises is still relatively Difficulty, it is difficult to have fundamental and long-term improvements in profitability.
Du Wei, a joint metal analyst, said that the large domestic state-owned steel companies were affected by the high level of long-term mineral deposits imported from the previous period, and the current cost could not avoid losses, and the production cut was still 50%-60%.
Despite the recent rebound in steel prices, the production costs of many steel producers remain high. According to the above-mentioned steel makers, “In terms of steel prices, the increase in the ex-factory price of steel cannot keep up with the increase in production costs. In the cost segment, the prices of coal and coke have also risen, and iron ore has also risen in price.â€
The source revealed that "since the entire economy is still in a downward trend, many steel companies still face great difficulties."
According to the latest statistics from Union Metals, since mid-July this year, the upward adjustment has become the main tone in a series of new price adjustment policies issued by steel mills. Among them, Anshan Iron and Steel in January next year, hot rolled, low carbon and ship price base will be increased by 350 yuan / ton. Shougang HRC is increased 300 yuan / ton. Maanshan Iron and Steel will raise the prices of various varieties in the second half of this month, ranging from RMB 50 to RMB 200/ton. In addition, according to market feedback, Baosteel's ex-factory prices will also be adjusted upwards in February next year.
A boss of Liuzhou, Hebei, who has been in the trade of steel products for many years, told reporters that “the market has obviously felt warmer in the recent period, and some steel prices from the manufacturers have risen and some of our sales have gone up.â€
The domestic steel consulting agency recently issued a report that, as of December 19, the total inventory of iron ore at 19 ports in China’s coastal areas was 59.99 million tons (not including yards outside the port), which was 74 million tons a month ago. 14 million tons, a decrease of 19%. At the same time, port spot iron ore prices have risen in stages. The statistics of joint metal nets have similar situations.
The data released by the Ministry of Commerce also showed that during the week from December 15 to 21, the average price of iron ore in the country rose by 2.3% compared with the previous week. The price of iron ore in the main producing areas of Hebei Tangshan and Liaoning Anshan were respectively It rose by 4.8% and 4.6%.
It is understood that after a sharp decline in the previous period, starting from the beginning of November, spot iron ore prices in India began to rise, 63.5% of ore fines have risen from 67 US dollars / ton to 80 US dollars / ton (dry basis Tax), up 20%. Domestic spot mine prices have also risen correspondingly, and the ex-factory price of Tangshan 66% iron powder dry basis has increased from 635 yuan/ton at the beginning of last month to 722 yuan/ton, up 14%. At the same time, the international shipping market rebounded slightly after reaching the trough, and the Baltic Freight Index (BDI) rose by 20% in the past 10 days.
Some experts said that the resumption of production by steel companies and the price increase of steel products are mainly due to the current increase in infrastructure construction, construction of large-scale railways and large-scale projects, and an increase in the demand for steel products.
However, Union Metals analyst Hu Yanping believes that the recent steel market is still subject to the macroeconomic background, and the recent upward momentum in the market is not strong. According to the recently released macro data, downstream demand and exports have all experienced a significant decline. At the end of the year, the steel market still faces downside risks.
“It is difficult to improve the financial status of steel enterprises, especially large-scale steel enterprises, due to price increases of steel products. At present, the price of iron ore is also increasing.†A middle-class source of the strategic investment department of the new cast pipe group told reporters that the operation of steel enterprises is still relatively Difficulty, it is difficult to have fundamental and long-term improvements in profitability.
Du Wei, a joint metal analyst, said that the large domestic state-owned steel companies were affected by the high level of long-term mineral deposits imported from the previous period, and the current cost could not avoid losses, and the production cut was still 50%-60%.
Despite the recent rebound in steel prices, the production costs of many steel producers remain high. According to the above-mentioned steel makers, “In terms of steel prices, the increase in the ex-factory price of steel cannot keep up with the increase in production costs. In the cost segment, the prices of coal and coke have also risen, and iron ore has also risen in price.â€
The source revealed that "since the entire economy is still in a downward trend, many steel companies still face great difficulties."
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