1. Rising raw material prices
China's iron ore mainly comes from imports. Australia and Brazil are the two largest importers of Chinese iron ore. Among them, China imports the highest proportion of iron ore from Australia every year, reaching 67%. Therefore, fluctuations in Australian iron ore prices have the greatest impact on the Chinese steel market.
According to news on February 22, 2021, the price of Australian iron ore soared to $170.95/ton, chasing the record high of $176.20/ton set in December last year.
The rise in iron ore prices will inevitably lead to an increase in the cost of iron and steel smelting, and iron and steel enterprises will inevitably pass on the rising smelting costs to steel processing enterprises, and steel processing enterprises will also pass on the rising procurement costs to the steel sales market.
2. Strong market demand for steel
Since 2021, the demand for steel in the real estate industry has been relatively stable. Generally speaking, as long as the demand for steel in the real estate industry is relatively stable, the market price of steel will be relatively stable.
In the case of relatively stable steel market prices, this year's manufacturing prosperity index is relatively high, driving steel demand to pick up. With the rising demand for steel, the steel market has become a seller's market, and the price of steel holds the final decision of steel enterprises.
According to the data monitored by the China Railway Association, as of April 8, the national inventory of the five major steel varieties was only 18.84 million tons, a decline for five consecutive weeks. It can be seen that although the price of steel is rising, the market demand for steel is also rising.
Extended data
Steel prices soar:
According to data released by the National Bureau of Statistics recently, in early April 2021, compared with late March, the prices of 27 of the 50 important means of production in the national circulation field rose significantly, among which steel prices rose the most. Most prominent.
